Reliance writes off its $200 million investment in Dunzo

Reliance Industries has written off its investment in hyperlocal delivery platform Dunzo, according to its annual report for FY25. Reliance Retail had led a $240-million (around Rs 1,800 crore) funding round in Dunzo in January 2022, acquiring a 26% stake in the Bengaluru-based company.

In its FY24 annual report, Reliance had valued this stake at Rs 1,645 crore. The conglomerate had invested in Dunzo to expand its presence in the fast-growing quick commerce space.

Despite raising over $450 million in total including $200 million from Reliance Retail, Dunzo struggled to stay afloat amid intensifying competition in the segment. Its aggressive push for growth, including the launch of Dunzo Daily, a 15–20-minute grocery delivery service, led to a sharp rise in monthly expenses, which crossed Rs 100 crore at one point.


Costly marketing initiatives, such as a high-profile Indian Premier League (IPL) sponsorship, boosted visibility but also worsened the company’s cash burn. While Dunzo gained business volume, it failed to shed its image as primarily a courier service, a perception that hampered its quick commerce ambitions.

As funding dried up and cash reserves depleted, Dunzo was forced to extend its delivery timelines from 15 minutes to 60 minutes in a bid to lower costs through order batching. The situation was compounded by a broader slowdown in India’s startup funding environment through 2023.

By 2024, the company had drastically scaled down operations in both quick commerce and courier services, undergoing multiple rounds of layoffs. In contrast, rivals such as Swiggy’s Instamart, Zomato-owned Blinkit, and Zepto continued to expand their footprint.

The final blow came in early 2025 when Dunzo’s app and website went offline, shortly after cofounder and CEO Kabeer Biswas stepped down. He now heads Walmart-backed Flipkart’s quick commerce vertical, Flipkart Minutes.

Between late 2023 and 2024, much of Dunzo’s leadership team exited as the company struggled to raise fresh capital. In September–October 2023, five members of its board of directors resigned. Around the same time, cofounder Dalvir Suri, who headed Dunzo Merchant Services, also left the company.

Following Suri’s exit, cofounders Mukund Jha and Ankur Agarwal departed the firm to pursue new ventures.

Besides Reliance, Google was another major investor in Dunzo, holding a 20% stake.

Also Read: Dunzo’s demise: How the Reliance-backed hyperlocal delivery startup unravelled