Dunzo was in talks with Swiggy and Tata’s BigBasket regarding a possible takeover, but these negotiations ultimately failed.
NEW DELHI: In a major move, Mukesh Ambani-led Reliance Retail has decided to book a $200 million investment in hyperlocal startup Dunzo. According to a report by Inc42, the decision was made following the company’s financial difficulties and its exit from Quick Commerce over the past two years. The report further added that Reliance, which holds 25.8 per cent stake in Dunzo, will no longer be involved in any discussions regarding additional financing or fire sale.
Reliance made the investment in January 2022
Dunzo’s Kabir Biswas is reportedly in talks with high-net-worth individuals and family offices for acquisition deals, valuing the startup at Rs 300 million (US$25 million-US$30 million).
It is important to note that Biswa recently left the company. Co-founders Mukund Jha, Dalbir Suri and Ankur Agarwal also resigned.
Dhanzo was in talks with Swiggy and Tata BigBasket regarding a possible takeover, but the talks ultimately fell through, sources told Inc42. The company was aiming to be profitable in fiscal 2025, but faced major challenges, including months of delayed salary payments and difficulties paying membership fees to former employees.
What you need to know about Dunzo:
Dunzo was founded in 2024 in Bangalore. Dunzo, which started as a hyperlocal delivery service, expanded into the quick commerce space but faced stiff competition from well-funded startups like Swiggy’s Instamart, Zepto and Zomato’s Blinkit. Dunzo last raised $75 million in a Series F round in April 2023. According to Tracxn data, the company’s post-funding valuation as of April 14, 2023 was $744 million. However, most of the investors, including Reliance Retail, Google and venture capital firm Lightbox, have now left the company’s board.
