Reliance-backed Startup Dunzo in Crisis as Cofounder Kabeer Biswas Seeks Exit

Since 2023, the Bengaluru-based company Dunzo has faced challenges securing fresh funding to compete in the quick commerce market. Talks of cofounder Kabeer Biswas exiting the company have raised concerns about its future in a market dominated by well-funded rivals.  

Founded in 2015 by Kabeer Biswas, Dalvir Suri, Mukund Jha, and Ankur Aggarwal, Reliance Retail-backed hyperlocal delivery startup, Dunzo has revolutionized the way consumers connect with nearby stores for quick deliveries of groceries, medicines, and other daily essentials.

What led to the downfall of Dunzo? 

However, the company's journey has not been without its share of challenges, especially in the fiercely competitive quick commerce landscape.

According to sources familiar with the matter, Kabeer Biswas, the present CEO at Dunzo, has been in discussions with investors about his plans to step down from his role.

While some investors have reportedly supported his decision, the final call rests with Reliance Retail. According to a Moneycontrol report, “Biswas has resigned from the company and his resignation has been accepted, a formal announcement can be expected over the coming days.”

On the other hand, Reliance is distancing itself from Dunzo as evident from its decision against intervening in this crucial crisis period or even considering a buyout.

If Biswas indeed decides to leave the company, he would join his former cofounders who have already departed from Dunzo, leaving behind a leadership vacuum.

Earlier this year, the company had to downsize its workforce by laying off 150 employees to reduce costs. Additionally, reports suggest that Dunzo's creditors have initiated insolvency proceedings due to unpaid dues, adding to the company's woes.

The quick commerce space in India is witnessing rapid growth, with well-established players like Zomato's Blinkit, Swiggy's Instamart, and Zepto expanding their operations to capture a larger market share.

Incidentally, Dunzo's former cofounder Ankur Aggarwal is about to launch Kuik, which would help brands set up quick delivery services.

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