Reliance writes off $200m investment in delivery startup Dunzo

Reliance Retail has written off its 1,645 crore rupee (US$200 million) investment in Dunzo, according to the company’s latest annual report.

Reliance Retail held a 26% stake in Dunzo after leading a US$240 million funding round in January 2022.

Dunzo, an India-based hyperlocal delivery startup founded in 2014, shut down operations in January 2025 after its app and website went offline and co-founder Kabeer Biswas exited.

The platform faced mounting losses due to high costs of quick commerce, which led to layoffs, unpaid salaries, and downsizing before its closure.

Reliance Retail has since shifted focus to expanding its own grocery quick commerce operations.

It is relying on its retail network and developing new dark stores to grow this business.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Large investment write-offs reflect Reliance’s high-risk venture strategy

Reliance’s $200 million Dunzo write-off follows a pattern of significant investment losses for the conglomerate in emerging sectors.

In 2015, BP wrote off $830 million from its investment in Reliance’s KG-D6 oil block, which had seen production fall from 80 million cubic meters per day in 2010 to just 12 million cubic meters per day by 20141.

This demonstrates that Reliance regularly pursues ambitious bets in nascent industries, from oil exploration to quick commerce, where high potential returns come with substantial downside risks.

The scale of these write-offs suggests Reliance treats such investments as portfolio plays rather than core business extensions, accepting that some ventures will fail completely while others may generate outsized returns.

2️⃣ Quick commerce market consolidated around players with deeper pockets and infrastructure

Dunzo’s failure illustrates how the quick commerce sector quickly became dominated by well-funded incumbents with existing logistics networks.

By 2024, market share had concentrated among Blinkit (45%), Swiggy’s Instamart (27%), and Zepto (21%), while average order values increased from ₹250 to ₹500 industry-wide2.