Mumbai | August , 2025 — In one of the most significant downturns in India’s startup landscape, Reliance Industries has officially written off its entire ₹1,645 crore (~$200 million) investment in quick-commerce pioneer Dunzo. The investment, made through Reliance Retail Ventures in early 2022, had secured a 25.8% stake in the company.
Dunzo’s collapse began with leadership upheaval when co-founder and CEO Kabeer Biswas exited in January 2025 shortly before the app and website went offline. Despite raising over $450 million, Dunzo’s fortunes declined amid relentless competition from Blinkit, Zepto, and Instamart, accompanied by mass layoffs, unpaid salaries, and stalled investor negotiations. Efforts to rescue the company via acquisitions fell through, and creditors reportedly approached the NCLT over unpaid dues.
Reliance’s write-off adds Dunzo to a growing list of major startup casualties alongside Prosus’ $500 million write-off in Byju’s and Info Edge’s ₹276 crore write-off at 4B Networks highlighting how quickly investor trust can erode in the high-pressure, delivery-driven sector.
StartupByDoc Perspective
Dunzo’s fall is a somber lesson for founders and the broader ecosystem: even deep-pocketed backers and aggressive scale cannot guarantee survival without sustainable unit economics. As quick-commerce startups sprinted for reach, many overlooked margins and that gap comes due.
For founders eyeing sectors like logistics, on-demand services, or rapid delivery, Dunzo’s end signals a turning point. Building for velocity is exciting but building for resilience is what sustains.
Explore more founder-first insights on India’s highest-growth and highest-risk startup plays at StartupByDoc.