Bengaluru-based delivery platform Dunzo, founded by Kabeer Biswas in 2014, is seeking to address its financial challenges through a potential sale.

The company is looking for a buyer willing to assume its debt of 600 crore rupees (around US$69.7 million) and vendor liabilities in exchange for control of the firm.

Dunzo provides grocery deliveries, courier services, and a B2B delivery model. However, it has faced financial instability over the past 18 months.

Attempts to secure new investments or sell the startup to major entities such as Flipkart, PhonePe, or Swiggy have not been successful.

Currently, the company operates at a reduced scale of 40,000 daily orders. It reports breaking even on salaries and vendor payments. Employee numbers have dropped drastically from 2,000 to just 50.

However, the company’s debt situation presents challenges. Tax liabilities estimated between 60 crore and 80 crore rupees (around US$6.9 million to US$9.3 million) need resolution to protect directors from legal risks.

Reliance, a key investor, has also withdrawn from any acquisition or restructuring plans. It previously acquired Dunzo’s grocery app and merchant base, while it has chosen not to further intervene due to liability concerns. The company’s board has also experienced changes, with some investors departing amid ongoing financial uncertainties.

Its founder Biswas remains on the board but has been largely absent from daily operations.

Recent Dunzo developments