Reliance Retail, part of Mukesh Ambani’s Reliance Industries, has officially written off its Rs 1,645 crore investment in hyperlocal delivery startup Dunzo. The write-off was disclosed in the company’s FY25 annual report.
Dunzo, founded in 2014, began as a concierge-style delivery service in Bengaluru, offering on-demand courier deliveries. It quickly gained popularity for its convenience and raised over $450 million from major investors, including Google and Lightbox.
Reliance Dunzo Deal
Reliance Retail acquired a 26% stake in Dunzo in January 2022 by leading a $240 million funding round. The move was seen as a strategic push into the fast-growing quick commerce sector, competing with Swiggy’s Instamart, Zomato-owned Blinkit, and Zepto.
However, Dunzo’s shift from logistics to 15–20-minute grocery deliveries proved expensive. The company’s monthly cash burn reportedly crossed Rs 100 crore at its peak, fuelled by rapid expansion and costly marketing, including Indian Premier League sponsorships.
Challenges and Cutbacks
Funding winter conditions in 2023 hit Dunzo hard, leading to layoffs, delayed salary payments, and overdue vendor bills. These operational issues forced the company to scale back both its courier services and quick commerce business in 2024.
The situation worsened in early 2025 when Dunzo’s app and website went offline. Around the same time, co-founder and CEO Kabeer Biswas left the company to head Flipkart’s new quick commerce venture, Flipkart Minutes.
Reliance Shifts Strategy
Reliance Retail appears to be pivoting away from depending on external delivery platforms. Instead, it is reportedly building its own quick commerce infrastructure, using its vast physical retail network and setting up dark stores in underserved pin codes.
This approach could allow Reliance to control the entire supply chain and customer experience, while avoiding the high cash burn that plagued Dunzo’s rapid expansion.
