Mukesh Ambani, Isha Ambani lose interest in quick commerce, write off Rs 17000000000 investment from…

Mukesh Ambani, Isha Ambani’s Reliance’s exit and Dunzo’s declining valuation signify a major shift in India’s quick commerce landscape, wherein sustainability and profitability are taking over growth.

After two years of financial turmoil and Dunzo’s exit from the quick commerce segment, Reliance Retail, its largest shareholder, has written off its $200 million (Rs 1,700 crore) investment in the startup. According to media reports, Mukesh Ambani, Isha Ambani led Reliance Retail has decided against further investments or acquiring the company. Meanwhile, Kabeer Biswas, CEO and co-founder of Dunzo, is in talks with high-net-worth individuals and family offices to sell the company at a drastically reduced valuation of Rs 300 crore ($25–$30 million).

This represents a steep decline from Dunzo’s earlier $770 million valuation during its last funding round, which saw Reliance as a significant investor. Biswas has also approached potential buyers like Flipkart, Swiggy, Tata Group, and Zomato, but no deal has been finalized yet. The strained relationship between Dunzo and its investors, including Reliance, Lightrock, and Lightbox, became evident in 2023 when their representatives exited the company’s board.

Struggles In Quick Commerce Boom

Dunzo’s troubles began in early 2022 as it failed to capitalize on the quick commerce boom. Reliance’s strategic investment aimed to integrate Dunzo with JioMart and its retail ecosystem, but the startup was outpaced by competitors like Zepto. By FY23, Dunzo’s losses had tripled to Rs 1,801 crore, compounding cash flow issues, delaying employee salaries, and leaving vendors unpaid.

Operational Adjustments Amid Debt

In a bid to cut costs, Dunzo shifted its delivery promise from 15–20 minutes to 60 minutes. The company also secured $6.2 million in debt funding to sustain operations. However, it still faces significant financial liabilities, including Rs 80 crore in unpaid vendor and tax dues.

Future Prospects and Leadership Changes

Kabeer Biswas is focusing on settling outstanding debts as part of any acquisition deal. Reports suggest that he may step down as CEO once a sale is finalized. While Biswas explores acquisition opportunities, the company’s dramatic fall from grace underscores the challenges of scaling in the competitive quick commerce market.