Kabeer Biswas, the last remaining co-founder and current CEO of Dunzo, a Reliance Retail-backed quick commerce platform, is reportedly considering leaving the company, according to a report by The Economic Times. The Bengaluru-based company has encountered significant financial turmoil over the past 12–18 months, grappling with severe cash flow issues, and facing difficulty in raising fresh capital. These challenges have been exacerbated by the fierce competition from well-established players in the quick commerce industry such as Zomato’s Blinkit, Swiggy’s Instamart, and Zepto, as well as the entry of global e-commerce giants like Flipkart and Amazon, all of which have rapidly grown and expanded in the sector.
According to sources familiar with the matter, Biswas has discussed the possibility of moving on from Dunzo, though a consensus among the company's stakeholders has yet to be reached. Some investors, understanding the company's precarious financial situation, have reportedly expressed openness to Biswas’s departure. One insider revealed that talks regarding his exit have taken place, but no final decision has been made yet. While the discussions are ongoing, a few investors appear to be amenable to the idea, given the company's current struggles.
Additionally, the report mentions that discussions are underway regarding the fate of Biswas’s remaining stake in the company. Reliance Retail, which holds a 25.8% stake in Dunzo, has not yet formally approved any proposal regarding his exit, but it is actively engaging in deliberations with other investors on the future trajectory of the company. Despite these ongoing talks, the situation remains uncertain, with no immediate resolution in sight.
Dunzo, which once stood as a trailblazer in the hyperlocal delivery space, has raised over $450 million in funding, including a significant amount of debt. Its most notable investment came from Reliance Retail in January 2022, when the conglomerate invested Rs 200 crore as part of a Rs 240 crore funding round. At the time, Reliance’s support was considered a strong endorsement of both Dunzo and the entire quick commerce sector, signaling confidence in the company's long-term prospects. Google, a key investor in the company, owns just under 20% of Dunzo, further underscoring the weight of backing it has received from prominent global players.
Despite these investments, Dunzo has struggled with a severe cash crunch since 2023. The company has faced multiple rounds of layoffs, delays in salary disbursements, and a significant contraction in its operations. While Dunzo has managed to secure debt financing to keep its day-to-day operations running, it has found itself mired in legal challenges, with creditors taking the company to the National Company Law Tribunal (NCLT) over unpaid dues. This financial instability has taken a toll on the company’s standing in the market, and sources indicate that the company's operations have been drastically scaled back, with very little left in terms of active services.
The ongoing situation has led former executives of Dunzo to explore new ventures within the quick commerce space. Their departure from the company signals a shift in the industry, as the company's dominance in the sector has steadily diminished. As a result, the future of Kabeer Biswas’s role at the company, as well as the strategic direction Dunzo will take moving forward, now hinges on the decisions made by Reliance Retail. With Reliance Retail's significant stake in the company, its involvement in deciding Dunzo’s future is critical.
While neither Reliance Retail nor Kabeer Biswas has officially confirmed the developments regarding his potential departure, the report indicates that some of Dunzo’s shareholders, many of whom have already written off their investments in the company, are not opposed to Biswas’s exit. These shareholders are reportedly willing to allow him to move on and explore other opportunities in light of the company’s current state.
The situation surrounding Dunzo’s financial woes and Biswas's possible exit highlights the rapidly changing landscape of the quick commerce industry. Despite its promising beginnings and early investment support, Dunzo now faces a battle to remain relevant in a highly competitive market, with questions surrounding its leadership, financial health, and operational future. The company's ability to navigate these challenges and its potential for recovery remain uncertain, and its future may depend heavily on the restructuring decisions that are made in the coming months.
