
Dunzo Goes Offline Following CEO Departure
Dunzo, the hyperlocal delivery app backed by Reliance, has gone offline following the departure of its co-founder and CEO, Kabeer Biswas. Biswas has joined Flipkart's quick commerce business, Minutes. This comes after a period of struggle for Dunzo, which was once at the top of India's quick commerce space.
The app and website have shut down completely, displaying error messages to users. This follows a period of decline for Dunzo, which had been facing financial difficulties and had drastically reduced its operations. The startup had downsized significantly and even faced salary delays for employees. Dunzo's creditors have also taken the company to the National Company Law Tribunal (NCLT) over unpaid dues.
Despite raising over $450 million, including $200 million from Reliance Retail in January 2022, Dunzo struggled to compete with rivals like Zomato-owned Blinkit, Swiggy Instamart, and Zepto. These three currently dominate the quick commerce landscape in India, with Blinkit leading the race with a 46% market share, followed by Zepto with 29% and Swiggy Instamart with 25%, according to a Motilal Oswal report.
Dunzo's failure to capitalize on its early-mover advantage has resulted in its decline. The company's investors, including Reliance Retail and Google, who hold major stakes in Dunzo, will now have to decide on the future of the company.