Dunzo app, website go offline post cofounder Kabeer Biswas exit to Flipkart

Dunzo’s mobile app and website went offline on Monday, pushing the hyperlocal delivery platform to the brink of complete shutdown, soon after its remaining cofounder and CEO Kabeer Biswas quit to join Flipkart to lead its quick commerce business Minutes.

Once a pioneer in India’s quick commerce space, Dunzo has drastically reduced its footprint in quick commerce and courier services to a bare minimum over the past 12-18 months and resorted to multiple rounds of layoffs as it struggled to raise funds to sustain operations.


Both Flipkart and PhonePe had previously explored acquiring Dunzo during its funding crisis, but the deal faltered as investors resisted relinquishing the brand, people familiar with the matter said.

"There is no board. There is no one to run the platform. Investors are also not interested and have pulled the plug," a person briefed on the matter said.

Despite raising over $450 million, including $200 million from Reliance Retail in January 2022, Dunzo struggled to maintain its market position. Its cash burn to scale operations, coupled with an inability to raise additional equity, led to significant downsizing.

Former executives, including cofounder Ankur Agarwal, have moved on to launch new ventures in the quick commerce space, with some close to securing funding.

Meanwhile, Dunzo’s creditors have taken the company to the National Company Law Tribunal (NCLT) over unpaid dues.

Biswas, who cofounded Dunzo in 2014 and has been trying to find a buyer for the firm for several months, resigned recently. He has joined Walmart-owned Flipkart to head its recently launched quick commerce division.

With a 26% stake, Reliance Retail is the largest shareholder in Dunzo. Google holds nearly 20% stake.

Reliance Retail did not immediately respond to ET's request for a comment.

Reliance’s $200-million bet on Dunzo in early 2022 was intended to bolster its quick commerce ambitions, but the partnership struggled to deliver returns.

Since early 2023, Dunzo employees have endured multiple rounds of layoffs and salary delays.