In a surprising move, Reliance Industries has written off its ₹1,645 crore investment in quick-commerce startup Dunzo, marking one of the largest startup setbacks in recent history. The decision, disclosed in Reliance’s FY25 annual report, underscores the hyperlocal delivery sector’s struggles amid fierce competition.
The Investment & Initial Strategy
Back in January 2022, Reliance Retail led a $240 million funding round, acquiring approximately 26% stake in Dunzo with the goal of fortifying last-mile logistics for JioMart and expanding its quick-commerce footprint.
Why the Write-Off?
- Dunzo faced unsustainable cash burn, with losses widening to around ₹1,800 crore in FY23. Aggressive expansion and marketing failed to yield profitable growth. mint
- The company scaled down operations significantly, laying off over 150 employees and facing delayed salary payments.
- By early 2025, Dunzo’s app and website went offline following CEO Kabeer Biswas’s exit—he later joined Flipkart’s quick-commerce project.
- With the platform defunct, Reliance declared its entire investment as non-recoverable—confirming “worth nothing” valuation.
Community Perspective
Some startup observers painted Reliance’s involvement as hampering Dunzo’s independence:
“Reliance’s deal gave them veto power over major decisions… Reliance refused to commit its share, blocking the entire funding round.”
Others saw Dunzo as casualty of a ruthless market and possibly poorly managed internally.
“Money from Reliance always comes with an asterisk… Reliance invests in a company then the company shuts down.”
Broader Implications
Dunzo’s unrecoverable losses highlight how quick-commerce continues to mirror hyper-competitive, low-margin markets. While Reliance shifts focus to internal logistics and JioMart’s neural network, rivals like Zepto, Instamart, and Blinkit are sharply scaling and continuing aggressive expansion.
