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Hey I am on Medialย โขย 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 โน500 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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