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Dunzo Cofounder Kabeer Biswas To Quit: Reports

• ByStartupStory     |    January 2, 2025

In a major development, Kabeer Biswas, cofounder and CEO of Reliance Retail-backed hyperlocal delivery startup Dunzo, has reportedly stepped down from his position.

“Biswas has resigned from the company and his resignation has been accepted, a formal announcement can be expected over the coming days,” Moneycontrol reported, quoting a source.

When approached for confirmation, Biswas declined to comment. Similarly, Lightbox, one of Dunzo’s earliest investors, also refrained from commenting on the story.

However, a report by Economic Times (ET) suggested that while Biswas has “discussed” his resignation with investors, no final decision has been made yet.

“All options are on the table, including what happens to his remaining stake in the company. Reliance, however, hasn’t yet approved the proposal but continues to be in discussions on the matter,” the ET report quoted a source as saying.

The reported resignation comes at a turbulent time for Dunzo, which is grappling with severe financial strain, employee layoffs, and mounting creditor petitions.

Founded in 2015 by Kabeer Biswas, Dalvir Suri, Mukund Jha, and Ankur Aggarwal, Dunzo has been a key player in the hyperlocal delivery sector, connecting consumers with local stores for groceries, medicines, food, and other essentials.

Should Biswas step down, he will follow the exit of his cofounders Jha, Aggarwal, and Suri, who have all left the company. Earlier this year, the Bengaluru-based startup reportedly laid off 150 employees across supply chain and market verticals in a cost-cutting move.

Meanwhile, one of Dunzo’s cofounders, Ankur Aggarwal, is reportedly starting a new venture in the quick delivery segment, tentatively named “Kuik.” According to ET, the startup aims to help brands establish quick delivery services and has already piloted three stores in Bengaluru.

The report noted that Kuik is seeking funding between $3 Mn and $4 Mn from investors who had previously backed Dunzo.

Dunzo has also faced legal troubles with creditors in recent months. Two creditors, Invoice Discounters of Dunzo Digital and Velvin Packaging, sought insolvency proceedings against the startup for unpaid dues.

While the exact outstanding amount remains undisclosed, the National Company Law Tribunal (NCLT) stated in September 2023 that Dunzo had failed to resolve its disputes with creditors despite being granted three months to do so.

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