Reliance Retail, the titan of India’s retail industry led by Mukesh Ambani, has written off its entire Rs 1,645 crore investment in Dunzo. This decision, revealed in the company’s FY25 annual report, marks a major turning point and serves as a cautionary tale in India’s booming quick commerce sector.
Dunzo’s Rise: From Bengaluru Star to Quick Commerce Crusader
Founded in 2014, Dunzo was a favourite for Bengaluru’s busy youngsters. It started as a hyperlocal pick-up, delivery, and concierge service. It quickly became the go-to solution for everything from groceries to forgotten keys. With star investors like Google and Lightbox, Dunzo raised over $450 million.
By 2022, Reliance Retail injected Rs 1,645 crore and took a 26% stake. The goal: use Dunzo’s tech and network to strengthen last-mile delivery for JioMart and other Reliance retail ventures.
The Quick Commerce Fever and Dunzo’s Downfall
Dunzo dived headfirst into the quick commerce race, promising groceries and daily essentials delivered in just 15–20 minutes. But this game is expensive. Competition from Blinkit, Zepto, and Swiggy Instamart led to a massive cash burn—over Rs 100 crore monthly at its peak.
Operational costs soared. IPL sponsorships, flashy campaigns, and big discounts burned cash fast. Meanwhile, dark stores and logistics needed massive, ongoing investment. As losses touched Rs 1,800 crore in FY23, cracks began to show.
2023–2025: Crisis, Collapse, and Exit
By 2023, Dunzo faced a harsh funding winter. Layoffs and delayed salaries became routine. Even basic vendor payments were missed. The website and app finally went offline by January 2025, days after CEO and co-founder Kabeer Biswas resigned, quickly joining Flipkart’s new quick commerce arm.
Investors like Reliance and Google explored possible sales or partnerships, but no deals materialised. With mounting debts and no rescue in sight, creditors approached the National Company Law Tribunal (NCLT).
Reliance Charts a New Course
After cutting its losses with Dunzo, Reliance Retail is not giving up on quick commerce. Instead, it will build its own system using its huge retail network. Plans include leveraging 4,000+ stores and setting up dark stores for rapid deliveries in underserved pin codes.
Reliance is now focused on organic, in-house growth instead of risky acquisitions. By combining robust logistics with unbeatable reach, Reliance aims to set new benchmarks for speed and reliability in metros and beyond.
The Road Ahead
Reliance’s write-off is one of India’s biggest tech sector losses. For the quick commerce world, it’s a wake-up call: big dreams need sustainable business models. As quick commerce gets reshaped, one thing stays true—Indians want instant service, and Reliance is betting it can deliver better, smarter, and longer.