Reliance Retail, the largest stakeholder in the struggling hyperlocal startup Dunzo, has reportedly written off its $200 million investment in the company, according to multiple sources familiar with the matter.
Despite once being heavily invested in Dunzo, Reliance is no longer in discussions about either injecting new funds into the company or acquiring it in a distress sale. This comes after Dunzo’s ongoing financial troubles and its retreat from the quick commerce sector over the last two years.
Co Founder in High Level Talks
In the meantime, Dunzo’s co-founder and CEO, Kabeer Biswas, is in talks with high-net-worth individuals and family offices for a potential acquisition, with the startup’s current valuation estimated between INR 300 crore ($25 million to $30 million).
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Salvaging Dunzo
“Reliance has assured Kabeer that they will back him in efforts to salvage Dunzo, but they have no interest in buying it. A few years ago, they made an offer to purchase Dunzo at a near unicorn valuation, but Kabeer turned it down. However, after quick commerce companies dominated the sector and Dunzo struggled to scale beyond a handful of cities, Reliance lost all interest,” one insider shared.
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Additionally, senior executives from Reliance Retail, including Ashwin Khagiwala and Rajendra Kamath, along with representatives from other investors like Lightrock and Lightbox, stepped down from Dunzo’s board in 2023.
