Hyperlocal delivery service Dunzo is facing a major crisis as its app and website go offline amid significant organizational changes. The development follows the resignation of Kabeer Biswas, co-founder and CEO, who has left to join Flipkart to work on their quick commerce division. Biswas was the last of Dunzo's founding team to step away after Mukund Jha, Dalvir Suri, and Ankur Agarwal had already exited.
Reports indicate that Dunzo has been grappling with a funding crunch for months, leading to delayed salaries and vendor payments. Frustrated employees have filed complaints against Biswas over unpaid wages, further compounding the startup’s troubles. A report by Inc42 reveals that Reliance, one of Dunzo’s primary investors, has written off its $200 million investment and is no longer involved in discussions regarding additional funding or a potential distress sale.
The exit of Reliance, which held a 25.8% stake, was accompanied by the departure of other key investors, including Google and venture capital firm Lightbox, from the company’s board. Efforts to secure a buyout deal with companies like Swiggy and BigBasket reportedly failed, leaving Dunzo with limited options.
Founded in 2014, Dunzo had shown promise, securing $75 million in Series F funding as recently as April 2023. However, subsequent layoffs and financial instability now paint a grim picture for the startup that once revolutionized hyperlocal delivery services.
