Reliance Retail Write from Dunzo Investment

Reliance Retail has written off its investment of nearly £ 1.645 in hyperlocal convenience firm Dunzo, more than three years after investing in the company, according to Reliance Industries’ FY25 annual report. The Conglomerate retail division owned almost 26% in Dunzo. Reliance led a $ 240 million (around £ 1,800) in Dunzo in January 2022, along with Lightbox, Lightrock, 3L Capital and Alteria Capital. Dunzo was the opportunity of Reliance Retail to enter the Quick Commerce Race, an industry expected to exceed $ 60 billion by 2030. The agreement is expected to enable hyperlocal logistics for retail stores in Reliance, as well as strengthen the company’s OMNI channel capacity. Dunzo Reliance’s own Jiomart network of traders is also expected to help with delivery of the last kilometer. The write-off comes months after the co-founder of the firm and CEO of Biswas retired from his role and joined the e-commerce firm Flipkart to lead his recently formed fast dealership minutes. The move started the investors of the cash-caught up in search of ways to settle his fees and find a way forward, Mint reports in January. After Reliance Retail, Google India was the largest shareholder with a 19.3%stake, followed by Lightbox at 10%. Blume Ventures, Lightrock and the co-founders-Dalvir Suri, Mukund Jha, Ankur Agarwal and Biswas-the remaining interest. Dunzo was founded in 2014 as a hyperlocal convenience platform for consumers and businesses. A few years later, it turned to deliver groceries, and eventually in the hyper-competitive fast trading space. Since its inception, Dunzo has raised about $ 470 million from investors. But over the past two years, the beginning has found in a difficult place after burning through the cash. Discharge and delays in the salary after various layoffs and delayed salary payments, Dunzo dismissed 150 employees in August last year, leaving it with only 50 employees in the offer and market teams, Mint reports. Dunzo also closed its grocery delivery business in 2023, but continued the operation of Dunzo 4 Business, a business service for businesses. The company was also in conversation to raise $ 22-25 million in a mix of equity and debt from a clutch new and existing investors, who did not materialize. Dunzo struggled to keep costs in control. The fast trading business burned as much as £ 230 per order in the first half of 2022, according to an Entrackr report. In 2022-23, Dunzo produced a loss of £ 1,800 crore, almost four times higher than in the previous year. However, revenue jumped fourfold to £ 226. In a post to employees in August last year, Biswas said the company is practicing a post where it can cut back the profits to pay off its obligations, including salaries of current and former employees and payments to its sellers. But it didn’t get through.