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Hey I am on Medial • 1y
Why is Dunzo Failing? So Dunzo started with hyperlocal deliveries. And later expanded to multiple services. By 2021, it was almost a unicorn but there was a issue! It was loosing about *10 every 1 earned. In 2021, looking at trends, it also entered the Quick Commerce and this is where its failure began. Quick Commerce requires expensive infrastructure which increased their cost. Then, they also had spend a high on Customer Aquisition. Further, they had less Funding compared to other And later Reliance Purchased a 26% stake in it which gave them VETO power Thus, reliance denied when they planned to raise more money. Now, Their monthly burn is 100 cr, while they had ₹500 cr cash, 4 months ago. Which means they are almost bankrupt Lessons 1) Maintaining your USP: Keep Expanding but have a good identity like Zomato have for food dilevery 2) Adapt market changes Expand to new market when your core business is profitable or have huge cash. I hope you guys like it and Follow!
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