Reliance Writes Off Investment in Dunzo Amid Hyperlocal Delivery Platform's Struggles

Reliance Industries has written off its investment in Dunzo, a hyperlocal delivery platform, valuing the stake at Rs 1,645 crore. Despite raising $450 million, Dunzo struggled with intense competition, high costs, and a failure to shake off its courier-first image, leading to a drastic scaling down of operations and eventual app and website shutdown.

Reliance Industries Ltd (RELI.NS) has written off its investment in Dunzo, a hyperlocal delivery platform, valuing the stake at Rs 1,645 crore. The decision came after Dunzo struggled to sustain its operations amidst intense competition, high costs, and a failure to shift its courier-first image. Despite raising over $450 million, including $200 million from Reliance Retail, Dunzo faced unsustainable cash burn due to aggressive expansion and marketing initiatives [2].

Reliance Industries had invested in Dunzo to expand its presence in the fast-growing quick commerce space. However, Dunzo's aggressive push for growth, including the launch of Dunzo Daily, a 15–20-minute grocery delivery service, led to a sharp rise in monthly expenses, which exceeded Rs 100 crore at one point. Costly marketing initiatives, such as a high-profile sponsorship during the Indian Premier League (IPL), boosted visibility but also accelerated its cash burn [2].

By 2024, Dunzo had drastically scaled down its operations in both quick commerce and courier services, resorting to multiple rounds of layoffs. In contrast, rivals such as Swiggy's Instamart, Zomato-owned Blinkit, and Zepto continued to expand their footprint. The final blow came in early 2025 when Dunzo’s app and website went offline, shortly after cofounder and CEO Kabeer Biswas exited the company to head Walmart-backed Flipkart’s quick commerce vertical, Flipkart Minutes [2].

References:
[1] https://www.reuters.com/world/india/indias-reliance-warns-tariff-uncertainties-could-hit-trade-flows-2025-08-07/
[2] https://economictimes.indiatimes.com/tech/startups/reliance-industries-writes-off-its-investment-in-dunzo/articleshow/123169856.cms