Reliance Industries has taken a complete write-off of its ₹1,645 crore ($200 million) stake in Dunzo — one of its most high-profile tech bets — after the quick commerce platform went dark in early 2025. Despite a $775 million valuation and backing from Google, Dunzo’s collapse stemmed from a toxic mix of operational, financial, and leadership crises.
1. Cash Burn from Quick Commerce Pivot
Dunzo’s shift from a hyperlocal delivery app to a 20-minute grocery model in 2021–22 dramatically increased its capital needs. Scaling dark stores, maintaining inventory, and funding rapid delivery logistics meant high fixed costs. At its peak, Dunzo reportedly lost over ₹230 per order. FY23 saw a net loss of ₹1,800 crore, driven by ballooning advertising spends, operational inefficiencies, and mounting employee costs. The company’s modest revenue growth could not keep pace with its expenditure trajectory.
2. Leadership Exodus and Fundraising Roadblocks
Reliance Retail Ventures’ 25.8 percent stake — acquired in early 2022 to integrate Dunzo’s logistics with JioMart — came with significant control rights. While this brought stability and funding initially, industry insiders claim it limited Dunzo’s ability to raise capital from other investors. By late 2023, a severe liquidity crunch set in. The situation worsened with the exits of multiple co-founders, including Mukund Jha, Dalvir Suri, and Ankur Agarwal, culminating in CEO Kabeer Biswas’s departure in January 2025. Morale fell sharply as unpaid salaries and mass layoffs hit the company.
3. Operational Collapse and Failed Rescue Talks
By late 2024, creditors were approaching the National Company Law Tribunal over unpaid dues, and Dunzo’s app and website were intermittently offline. Strategic sale talks with Swiggy, Tata’s BigBasket, and other potential acquirers failed. Without a rescue deal, the service halted entirely in January 2025, erasing consumer trust and vendor confidence. With valuation estimates dropping to around ₹300 crore and no viable turnaround plan, Reliance opted for a complete write-off rather than further funding.
The Bigger Picture
Reliance’s Dunzo loss joins the ranks of some of India’s largest tech write-offs, alongside Prosus’ $500 million on Byju’s and Info Edge’s ₹276 crore on 4B Networks. The episode highlights the risks of capital-intensive quick commerce models and reinforces the importance of disciplined unit economics in the sector’s next growth phase.
