Mukesh Ambani, Isha Ambani make BIG move, decide to write off Rs 1660 crore investment in…, the company deals with…

Dunzo had engaged in talks with Swiggy and Tata's BigBasket regarding a potential buyout, but these discussions ultimately failed.

New Delhi: In a major move, Mukesh Ambani-led Reliance Retail has decided to write of its USD 200 million investment in hyperlocal startup Dunzo. According to an Inc42 report, the decision was taken following the company’s cash crunch and retreat from quick commerce over the past two years. The report further adds that that Reliance , which holds a 25.8 percent stake in Dunzo, is no longer involved in any discussions regarding additional funding or a distress sale.

Reliance made the investment in January 2022

Dunzo’s Kabeer Biswas is reportedly in talks with high-net-worth individuals and family offices for an acquisition deal, with the startup’s valuation set between Rs 300 crore (USD 25-USD 30 million).
It is important to note that Biswa has recently resigned from the company. Joining co-founders Mukund Jha, Dalvir Suri, and Ankur Agarwal have also stepped down.

Dunzo had engaged in talks with Swiggy and Tata’s BigBasket regarding a potential buyout, but these discussions ultimately failed, sources informed Inc42. While the company aimed to achieve profitability in FY25, it faced significant challenges, including delays in salary payments for several months and difficulties in clearing dues for former employees.

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All You Need To Know About Dunzo:

Dunzo was founded in 2024 in Bengaluru.
Starting as a hyperlocal delivery service, Dunzo expanded into the quick commerce space but faced stiff competition from well-funded startups like Swiggy’s Instamart, Zepto, and Zomato-owned Blinkit.
Dunzo last raised $75 million in a Series F round of funding in April 2023
The company had a post-money valuation of USD 744 million as of April 14, 2023, according to data from Tracxn.
However, most of its investors, including Reliance Retail, Google, and venture capital firm Lightbox, have now departed from the company’s board of directors.