ZippyMarshmallow
Why did Dunzo failed?
Dunzo was one of the pioneers in executing hyper local delivery at scale, considering they started way back in 2014.
They had customers, experience, tech, fleet of delivery guys.
Lastly and most importantly, a down to earth founder in “Kabir Biswas”
I am simply not able to wrap my head around the fact that while Zepto and Blinkit are doing so well , why couldn’t Dunzo replicate the same in Q commerce segment?
What do you guys think could be the reason behind their demise?
Just pivoting from hyper local to Q commerce can’t be the reason!
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PrancingPanda
Capgemini9mo
I am not an expert but perhaps COVID happened to dunzo. Blinkit started more recently while dunzo was there in 2019. During lockdown many delivery partners went to their hometown thereby rendering their fleet non-functional.
ZippyMarshmallow
Stealth9mo
Blinkit started recently? Bro it was started in 2013 as Grofers while changed its name to “Blinkit” in 2021.
Also bro you need to read more, their user base increased from 27 lakh to 51 lakh during Covid peak.
And even for a minute, we accept your argument, then it should have equally impacted the likes of Instamart , Zepto and Blinkit.But it didn’t.
PrancingPanda
Capgemini9mo
Did I offend you in some way? Please Try to avoid personal comments like "you need to read more". You asked, I answered, and if you already know about this topic then what's the point of asking?
As I mentioned in my post itself , I am not claiming to be an expert.
I wanted to write some points regarding this topic but your overall tone suggests you know it all.
FuzzyBiscuit
Stealth9mo
Investor fuck up.
Reliance made a "strategic investment" in them. Then when Dunzo was trying to raise a round shot down all termsheets they got, and they had to adhere to it because Reliance became their largest investor.
They have bullied Dunzo into shutting shop and then will takeover all their tech assets for a throwaway price in a distress sale when they declare bankruptcy.
Dirty dirty trick by Reliance.
Dunzo was so ahead of its time and my favourite player in the segment.
Sad to see them lose out for such a shit reason.
ZippyMarshmallow
Stealth9mo
Finally a sensible answer!Thanks for this info buddy. So as to summarise Motabhai took control and effed up the entire company. Any insight into what are they upto now?
FuzzyBiscuit
Stealth9mo
Relaunching Jio Mart on the back of Dunzo's hardwork.
Assholes honestly, itna paisa hai toh khud banao na pura tech.
Pains me to see startups being taken away from those who built it painstakingly.
FloatingBurrito
Capgemini9mo
Danzo killed Itachi that's why sasuke killed Danzo
SquishyHamster
Stealth9mo
Top kek!!!🤣🤘🏽
SqueakyNoodle
HealthifyMe9mo
HAHAH
MagicalMarshmallow
Dunzo9mo
Getting investment from reliance seems to be one of the top reasons. Some other reasons:
- Underestimating how hard it will be to get funding in the current market.
- Product team was the king here which is not a bad thing, they built a pretty good app and backend but I think they tried to solve a lot of problems like inventory management with wierd tech solutions instead of simple solutions in the real world which didn't end up working.
ZippyMarshmallow
Stealth9mo
Thanks for chiming in buddy! Can you elaborate on the “weird tech solutions”?
WigglyBanana
Stealth9mo
Transition to quick commerce absolutely didn’t work
The others were way ahead of them, they made that change and it never paid off
But that’s not all
Quick commerce also ate into their core pure bike delivery play
And finally, Reliance. They assured Dunzo would get funded, but everytime Dunzo would go out and get capital, Reliance would reject saying the valuation isn’t attractive. Didn’t let them survive.
SillyPretzel
Stealth9mo
Dunzo had a pretty good tech. What happened was the classic case of 'kill by microservices' and losing both early engineers and key talents to companies like zepto. Infact, part of Zepto's early engineering talent is from Dunzo. Product team was the best set of folks to start with but then they ended up making analysts across the board as PMs which bloated the decision making. Engineering and product titles were bloated. The final straw was excessive spend by the business team on opening up dark stores in expensive locations, throwing all the money to IPL with a makeshift CFO in the US unaware. Clearly, the CEO is at fault for not recognizing this early.
ZippyMarshmallow
Stealth9mo
That’s the answer I was looking for! Thanks buddy!
SillyPretzel
Stealth9mo
Blaming it on an investor is also very defensive. If a company is doing good, why would an investor want to kill it and not reap returns on investment ? Look what blinkit has done for zomato. Fact is dunzo never prepared for a war chest and kept on raising funds every 6 months. They hired too many MBAs. Every city had an MBA from ISB or a top IIM. Because of this, the company lost its appetite to innovate which created hyperlocal space in the first place. I personally saw many good business leaders leave just because they were pushed to a corner on any new fancy foreign MBA hire. All of those folks are doing great, leading similar companies in Europe, leading swiggy, etc.
JazzyPancake
Stealth9mo
Motabhai intentionally gave them a higher valuation. Dunzo's founders didn't realize the main goal of reliance and got excited getting higher valuation.
Once their funding dried, they started looking for more investors and they were getting investors but at lower valuation, reliance holding one of major stake didn't give their go ahead for lower valuation and THAT'S HOW MOTABHAI ATE DUNZO...
JazzyQuokka
Meesho9mo
Now he will buy their tech assets and merge with Jio Mart
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Curated from across
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by DizzyPancakePayU
Ex-Dunzo employee. AMA.
Since I am Done-Zo with Dunzo, AMA anything. Here to spill all the scoop that’s happened.
Top comments
Majorly tech and product affected?
How has the situation mentally affected the employees there?
Indian Startups22mo
by SleepyJellybeanData Scientist
India's 109th unicorn?
I had heard Waycool was also talking to raise at unicorn valuation, but they've fired like 300 people on Monday, so that's pretty uncertain. What to make of Zepto, though?
Top comment
Oh boy here we go again!
Indian Startups21mo
by PrancingMochiProgram Manager
Dunzo v/s Zepto: How come laws of physics are not holding up?
Dunzo is struggling for survival while Zepto is turning into a unicorn. How come laws of financial markets working in opposite directions for both. Both Zepto and Dunzo operate in same segment which is Quick commerce. What is the catch?
