Reliance Delivers a Write-Off: Dunzo’s $200M Journey Ends in Silence

In a sobering moment for India’s startup ecosystem, Reliance Industries Ltd has officially written off its entire $200 million (₹1,645 crore) investment in Dunzo, the once-celebrated hyperlocal delivery and quick commerce platform. The move, disclosed in Reliance’s FY25 annual report, marks one of the largest startup write-offs in Indian corporate history and signals a cautionary tale for investors chasing rapid growth in the quick commerce sector.

 

Dunzo’s Meteoric Rise

Founded in 2015 in Bengaluru, Dunzo began as a quirky task-based delivery app, helping users send packages, pick up groceries, and even retrieve forgotten keys. Its convenience and reliability quickly gained traction, and by 2020, it had evolved into a full-fledged hyperlocal logistics platform.

 

The real pivot came with the launch of Dunzo Daily, a 15–20 minute grocery delivery service that aimed to compete with emerging players like Blinkit, Zepto, and Swiggy’s Instamart. The company raised over $450 million from marquee investors including Google, Lightbox, Blume Ventures, and most notably, Reliance Retail Ventures Ltd (RRVL), which led a $240 million funding round in January 2022, acquiring a 25.8% stake.

 

The Cost of Speed

Dunzo’s aggressive expansion came at a steep price. Monthly operating expenses reportedly crossed ₹100 crore, driven by infrastructure scaling and high-profile marketing campaigns—including a costly Indian Premier League (IPL) sponsorship. While visibility soared, the company struggled to shake off its courier-first image, which diluted its quick commerce brand identity.

 

Despite its ambitions, Dunzo failed to build a sustainable business model. As funding dried up and reserves depleted, the company extended delivery timelines from 15 to 60 minutes to cut costs via order batching. This shift eroded its core value proposition and alienated users.

 

The Collapse

By late 2023, Dunzo’s financial health had deteriorated rapidly. The company underwent multiple rounds of layoffs, delayed salaries, and scaled down operations. Five board members resigned between September and October 2023, followed by the exits of cofounders Dalvir Suri, Mukund Jha, and Ankur Agarwal.

 

The final blow came on January 13, 2025, when Dunzo’s app and website went offline. CEO and cofounder Kabeer Biswas, the last remaining founder, exited the company and later joined Flipkart to lead its quick commerce vertical, Flipkart Minutes.

 

Creditors soon approached the National Company Law Tribunal (NCLT) over unpaid dues, effectively sealing Dunzo’s fate as a defunct entity.

 

Reliance’s Strategic Retreat

Reliance’s decision to write off its ₹1,645 crore investment reflects a strategic retreat from the quick commerce battleground. The conglomerate had internally valued its 78,923 equity shares in Dunzo at that amount in FY24, but marked them as nil in FY25.

 

This write-off places Dunzo alongside other high-profile startup failures, including Prosus’s $500 million write-off in Byju’s and Info Edge’s ₹276 crore loss in 4B Networks. It also raises questions about Reliance’s future approach to startup investments, particularly in sectors with high burn rates and thin margins.

 

Lessons for the Ecosystem

Dunzo’s downfall is emblematic of the challenges plaguing India’s quick commerce sector:

While Blinkit, Zepto, and Instamart continue to expand, Dunzo’s collapse serves as a cautionary tale for startups chasing growth without a clear path to profitability.

 

Sources: Entrackr, Economic Times, BW Disrupt