According to an Inc42 article, the decision comes as Dunzo has left the rapid commerce area in the last two years and is still having financial difficulties.
Reliance Retail is not in negotiations to buy Dunzo in a distressed sale or to provide more cash.
Dunzo President looks for expected purchasers
Purportedly, Dunzo’s President and prime supporter, Kabeer Biswas, is in chats with high total assets people and family workplaces for a potential procurement bargain.
The proposed arrangement could esteem the beginning up at around ₹300 crore (generally $30 million).
Be that as it may, Dependence Retail has guaranteed Biswas of its help in his endeavors to save Dunzo yet has communicated no interest in procuring the organization.
Past proposition
Dependence Retail’s past buyout offer
Prior, Dependence Retail had proposed a buyout of Dunzo at a close to unicorn valuation, which was dismissed by Biswas.
The organization’s advantage blurred with the ascent of fast trade new businesses and Dunzo’s limited extension past a couple of urban communities.
This lack of engagement was additionally reflected when senior chiefs from Dependence Retail left Dunzo’s board in 2023, alongside agents from different financial backers like Lightrock and Lightbox.
Valuation plunge
Dunzo’s valuation drop and ineffective buyout conversations
In the event that Dunzo is obtained at the proposed cost of $30 million, it would check a significant tumble from its past valuation of $770 million during its last subsidizing round.
Biswas has likewise supposedly held fruitless discussions with Flipkart, Swiggy, Goodbye Gathering, and Zomato for an expected buyout.
Dunzo keeps on working in pieces of Bengaluru however has stopped tasks in different urban communities.
Data
Biswas purportedly near stopping the organization
Recently, reports arose that Biswas is approaching his takeoff from the organization and has educated financial backers regarding his choice. The President intends to step down in the wake of administering any potential procurement bargain.
Monetary misfortunes
Dunzo’s monetary battles and labor force decrease
Dunzo’s monetary misfortunes have brought about radical cuts, neglected seller bills, and the exit of originators and key pioneers.
The organization’s misfortunes significantly increased to ₹1,801 crore in FY23 from ₹464 crore in the past monetary.
These monetary misfortunes likewise prompted deferred compensation installments for current and previous workers as well as forthcoming levy to merchants.