This formally brings an end to Dunzo’s platform, which had shrunk operations to a bare minimum over the past 12–18 months. The latest shutdown of its app and website underscores the precarious state of the company, which has drastically reduced its footprint in quick commerce and courier services.
Both Flipkart and PhonePe had previously explored acquiring Dunzo during its funding crisis, but the deal faltered as investors resisted relinquishing the brand, said people familiar with the matter.
Dunzo, once a pioneer in India’s quick commerce space, has been on a steep decline. Despite raising over $450 million, including $200 million from Reliance Retail in January 2022, the startup struggled to maintain its market position. Its cash burn to scale operations, coupled with an inability to raise additional equity, led to significant downsizing.
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Former executives, including cofounder Ankur Agarwal, have moved on to launch new ventures in the quick commerce space, with some close to securing funding. Meanwhile, Dunzo’s creditors have taken the company to the National Company Law Tribunal (NCLT) over unpaid dues.
Reliance Retail did not immediately respond to ET’s request for a comment.
With a 26% stake, Reliance Retail is the largest shareholder in Dunzo. Google holds nearly a 20% stake in the firm. Reliance’s $200 million bet on Dunzo in early 2022 was intended to bolster its quick commerce ambitions, but the partnership struggled to deliver returns.
Since early 2023, Dunzo employees have endured multiple rounds of layoffs and salary delays as the startup scaled down operations to sustain daily activities.
