In a grim development for India’s quick commerce sector, hyperlocal delivery platform Dunzo abruptly took its website and mobile app offline on Monday.
The shutdown comes on the heels of the departure of its remaining cofounder and CEO, Kabeer Biswas, who has joined Flipkart to spearhead its quick commerce venture, Minutes.
Read more: Dunzo Co-founder Kabeer Biswas set to join Flipkart Minutes as head of operations
The platform’s closure signals the formal end of Dunzo’s business, which has already been operating at a bare minimum over the past year to 18 months.
Once recognized as a pioneer in India’s burgeoning quick commerce segment, Dunzo’s downfall had becomes increasingly apparent as it struggled to raise fresh equity to support its high cash burn and expand its footprint.
In the midst of its funding crisis, both Flipkart and PhonePe reportedly explored the possibility of acquiring Dunzo, according to individuals familiar with the matter, but the deal failed to materialize as investors declined to relinquish the brand.
Over the past year, the company’s trajectory has been marked by multiple layoffs and delayed salaries, reflecting Dunzo’s struggle to meet daily operational costs.
Meanwhile, former executives, including cofounder Ankur Agarwal, have spun off new ventures in the same quick commerce space— some are close to securing fresh capital.
Creditors have also escalated their demands by taking Dunzo to the National Company Law Tribunal (NCLT) over unpaid dues.