RIL-backed Dunzo co-founder and CEO Kabeer Biswas to exit cash-strapped delivery startup

Reliance Retail-backed Dunzo is reportedly on the brink of a major leadership change, with co-founder and CEO Kabeer Biswas in talks to step down after facing a challenging period in the hyperlocal delivery and quick commerce space.

Multiple media reports suggest that the company’s investors are weighing the possibility of Biswas exiting, although Reliance Retail has not yet approved any final decision. If the proposal goes through, it would mark the departure of Dunzo’s last remaining founder.

Financial struggle

The startup, which began as a WhatsApp group in 2014, has weathered almost 12 to 18 months of turmoil marked by high cash burn, stiff competition, and mounting financial difficulties.

Dunzo had been exploring potential buyout talks with established players like Swiggy and Tata’s BigBasket, but those discussions reportedly fell through. Meanwhile, the company has been grappling with delayed salaries, with some employees and even Biswas himself said to be unpaid for several months.

Backing from notable investors

In recent years, Dunzo gained attention by securing investments from Reliance, Google, Blume Ventures, and other prominent backers. The platform once stood out for its quick commerce service, challenging giants like Swiggy Instamart, Tata BigBasket, and Zomato’s Blinkit.

However, the intensity of competition and the need for aggressive market expansion took a toll on Dunzo’s finances, forcing major operational changes and significant layoffs.

Biswas’ potential exit adds to the string of departures from the founding team, as co-founders Mukund Jha, Dalvir Suri, and Ankur Agarwal have already left to pursue other ventures.

The startup reportedly cut about 75% of its workforce last year, leaving around 50 employees in core roles. The downsizing and restructuring were part of a broader cost-control effort as Dunzo attempted to settle past-due salaries and vendor payments.

While some investors are believed to be willing to let Biswas move on, Reliance Retail’s stance remains crucial. Reports say all options are being examined, including what happens to Biswas’ remaining 3.4% stake in Dunzo.