Reliance-backed hyperlocal delivery platform Dunzo went offline shortly after its last remaining co-founder and CEO, Kabeer Biswas, left the company to join Flipkart. On Monday (January 13), both the website and app became non-functional, displaying error messages like “error: Something went wrong” to users. This development adds to the challenges faced by the company as it continues to grapple with its struggle for survival.
Kabeer Biswas moving to lead Flipkart’s quick commerce segment, Minutes, has been seen as a major shift in the industry. Despite raising over $450 million in funding, including a significant $200 million injection from Reliance Retail in early 2022, Dunzo has faced mounting financial difficulties1. The company’s operational footprint has drastically reduced over the past two years, with widespread layoffs and salary delays.
Once a pioneering player in India’s quick commerce space, Dunzo had been facing stiff competition from well-funded rivals like Zepto, Blinkit, and Instamart. The company’s efforts to secure additional equity funding fell through, leading to significant downsizing and the eventual shutdown of its digital platforms.
Both Reliance Retail and Google, key stakeholders in Dunzo, had previously explored acquiring the struggling startup during its funding crisis. However, those deals faltered due to investor resistance to relinquishing the brand1. Additionally, the company’s creditors have taken legal action, approaching the National Company Law Tribunal (NCLT) over unpaid dues.
The departure of Kabeer Biswas, the last remaining co-founder, underscores the turmoil within the company. Former executives, including co-founders Mukund Jha and Dalvir Suri, had already exited the company, leaving behind a depleted workforce.
As the quick commerce industry continues to evolve, Dunzo’s decline serves as a cautionary tale for startups navigating the competitive landscape. Flipkart’s acquisition of Kabeer Biswas highlights the shifting dynamics and fierce competition within the sector.
