Mukesh Ambani writes off his Rs 1645 crore investment in this company due to…
The deal was expected to enable hyperlocal logistics for Reliance Retail’s retail outlets as well as strengthen the company’s omni-channel capabilities.
According to the FY25 annual report of Reliance Industries, Mukesh Ambani’s Reliance Retail has written off its almost Rs 1,645 crore investment in hyperlocal convenience startup Dunzo, more than three years after making the transaction. The conglomerate’s retail division owned nearly a 26% stake in Dunzo.
In January 2022, Reliance, Lightbox, Lightrock, 3L Capital, and Alteria Capital launched a $240 million (about Rs 1,800 crore) investment round in Dunzo. Reliance Retail saw Dunzo as a chance to get into the fast-paced retail market, which is predicted to reach $60 billion by 2030.
It was expected that the agreement would improve Reliance Retail’s omni-channel capabilities and provide hyperlocal logistics for its retail locations. Dunzo was also supposed to assist with last-mile deliveries for Reliance’s own JioMart merchant network.
The write-off occurred months after Kabeer Biswas, the company’s co-founder and CEO, left his position to become the head of Flipkart, an online retailer, and its newly established Minutes fast commerce division. According to a January Mint report, the move left the startup’s investors searching for methods to pay its debts and find a way to move forward.
With a 19.3% interest, Google India was the largest stakeholder after Reliance Retail, followed by Lightbox with a 10% stake. The remaining shares are owned by Blume Ventures, Lightrock, and the co-founders, Dalvir Suri, Mukund Jha, Ankur Agarwal, and Biswas.
In 2014, Dunzo was established as a hyperlocal convenience platform for companies and customers. After a few years, it changed its focus to grocery delivery before entering the fiercely competitive quick-commerce market.
Dunzo has raised over $470 million from investors since its founding. However, after spending all of its money, the startup has been in a difficult situation for the last two years.
