Ambani's Reliance Retail writes off Rs 1,645 crore investment in Dunzo

Reliance Retail, the retail arm of Ambani's Reliance Industries, has formally written off its Rs 1,645 crore investment in hyperlocal delivery startup Dunzo, the company disclosed in its FY25 annual report.

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Founded in 2014, Dunzo began as a concierge-style delivery service in Bengaluru, gaining early traction for its on-demand courier services. Over time, the startup raised over $450 million from marquee investors, including Google and Lightbox, and expanded aggressively into grocery delivery with the launch of Dunzo Daily.

Reliance Retail, a subsidiary of Reliance Industries, led a $240 million funding round in January 2022, acquiring a 26% stake. At the time, the investment was seen as a strategic bet on the booming quick commerce sector, where rivals like Swiggy’s Instamart, Zomato-owned Blinkit, and Zepto were scaling rapidly.

However, Dunzo’s pivot from logistics to 15-20-minute grocery deliveries proved costly. The company’s monthly burn reportedly exceeded Rs 100 crore at its peak, driven by expansionary efforts and high-profile marketing campaigns, including sponsorship during the Indian Premier League. Despite the visibility, the economics didn’t add up.

The company’s troubles began to mount in 2023 amid funding winter conditions. Layoffs followed, along with delays in salary disbursals and missed vendor payments. By 2024, Dunzo had significantly scaled down its presence in both its courier and quick commerce verticals.

The final blow came in early 2025 when Dunzo’s app and website went offline. Around the same time, co-founder and CEO Kabeer Biswas exited the company to lead Walmart-owned Flipkart’s quick commerce initiative, Flipkart Minutes.

Reliance, meanwhile, appears to be shifting gears. Rather than relying on third-party platforms, the company is reportedly building its own quick commerce infrastructure by leveraging its extensive physical retail footprint and setting up dark stores in underserved pin codes.