To improve its coverage of deliveries that take less than 30 minutes throughout its vast network, Reliance Retail has opened more than 600 dark stores around India and intends to open more. After the quarterly results, Reliance Retail CFO Dinesh Taluja responded to an analyst question by stating that JioMart is in a better position because of its vast network of physical shops and the establishment of dark stores in specific areas. JioMart had a 42% Q-o-Q growth and a 200%+ Y-o-Y rise in average daily orders, while Reliance Retail has already operationalised 600 or so dark stores and is investing further to increase its play in speedy hyper-local delivery.
JioMart Ramping its Quick Commerce Services
With operations spanning 5,000 pin codes and served by over 3,000 outlets in more than 1,000 locations, JioMart continues to be the fastest-growing quick hyper-local commerce platform, according to Reliance Industries’ parent company’s results statement.
With its extensive network and well-placed hidden shopfronts, JioMart’s e-commerce platform—which competes with rapid commerce competitors like Swiggy Instamart, BigBasket, and Blinkit, owned by Zomato—has likely grown to be the biggest in the nation. Six months prior, during the March quarter, Reliance Retail claimed that 4,000 pin codes nationwide were served by its hyper-local delivery. Additionally, Reliance Retail has promised 30-minute delivery in ten cities for its fast hyper-local deliveries to the electronics and accessory categories.
The Recent Growth of JioMart
The business noted that JioMart attracted 5.8 million new consumers, marking a notable increase in client acquisition. This indicated a 120% Q-o-Q growth rate. The platform’s seller base increased by 20% year over year, and in order to increase customer choice, the live catalogue variety was further enlarged.
With plans to construct dark stores to increase the coverage area, Reliance Retail, which formerly had retail operations in 77.8 million square feet across India with 19,821 outlets, is drastically scaling up. Reliance Retail had previously stated that the JioMart app uses its network of Reliance Retail stores to deliver within a three-kilometre radius as part of the goal.
Quick Shots
•Reliance
Retail activates 600+ dark stores across India to strengthen its hyperlocal
delivery network.
•Goal:
Deliver orders within 30 minutes using strategically placed dark stores.
•JioMart
sees massive growth – 42% quarter-on-quarter and 200%+ year-on-year rise in
daily orders.
•Coverage
expanded to over 5,000 pin codes and 1,000+ cities, served by 3,000+ outlets.
•Competing
with Blinkit, Swiggy Instamart, and BigBasket in India’s quick commerce race.
•Customer
growth: 5.8 million new users, up 120% Q-o-Q; seller base up 20% Y-o-Y.
•Reliance
Retail footprint: 19,821 stores covering 77.8 million sq. ft nationwide.
•Focus
on electronics, grocery, and accessories under the 30-minute delivery
promise.
•Expansion
of dark store network planned to further enhance speed and reach.
JioMart, the digital commerce division of Reliance Retail Ventures Limited (RRVL), announced on October 17 that it had extended “quick” deliveries to over 1,000 cities. Alongside its Q2 FY26 results, RRVL released a statement stating that its “quick” delivery operations now cover more than 5,000 pincodes overall.
JioMart’s approach to rapid commerce involves orders being delivered in less than 30 minutes, in contrast to competitors like Blinkit, Instamart, and Zepto that deliver within 10 minutes. With operations spanning 5,000 pin codes and served by over 3,000 outlets in more than 1,000 locations, JioMart is the fastest-growing quick hyper-local commerce platform, according to a statement from RRVL.
Based on this, the conglomerate reported that JioMart’s average daily orders for its 30-minute delivery service increased by 200%+ YoY and 42% QoQ. According to JioMart, the platform’s seller base increased 20% YoY during the reviewed quarter, and it attracted 58 lakh new customers overall in Q2 FY26, up 120% QoQ.
JioMart reported that AJIO Rush, its newly introduced four-hour online clothing delivery service, is currently available in 300 pincodes. The business also stated that “AJIO Rush gained significant traction and was live in over 300 pin codes across the top 6 cities.” It is important to remember that in the first quarter of FY26, AJIO Rush was introduced in six cities. In the meantime, the retail behemoth supported by Reliance said that the rapid clothing service outperformed regular AJIO orders in terms of conversion rates, average selling price, and returns.
According to a statement from RRVL, the service produced better outcomes than the platform average, including a 16% increase in average selling price (ASP), a 17% improvement in conversion rates, and a 500 basis point decrease in sales returns. At the end of Q2 FY26, Shein, which Reliance relaunched in India earlier this year, had more than 25,000 options, over 6 million app downloads, and 11.4 million monthly active users (MAU).
Reliance Retail’s outstanding performance during the quarter was driven by our unwavering commitment to operational excellence, investments in stores and digital platforms, and festive shopping across consumption baskets, according to RRVL executive director Isha Ambani’s statement to the media. As consumers benefit from cheaper prices, adjustments in the GST rate will further stimulate the rise of spending.
Financial Dynamics of Reliance Retail
Overall, Reliance Retail’s net profit increased from INR 2,836 Cr in the previous quarter to INR 3,457 Cr in Q2 FY26, a 21.9% increase. Additionally, revenue from operations increased by 19% to INR 79,128 Cr in the reviewed quarter from INR 66,502 Cr in the second quarter of FY25.
However, the digital streaming division of Reliance Industries Ltd. (RIL) had a mixed quarter. In Q2 of FY26, JioHotstar averaged about 40 Cr monthly active users, up from an average of 46 Cr MAUs in the previous quarter. This was mostly caused by the OTT platform’s post-IPL slowness. Consolidated net profit for Jio Platforms, RIL’s digital division, increased 13% to INR 7,379 Cr in Q2 FY26 from INR 6,539 Cr in the same quarter last year.
From INR 31,709 Cr in Q2 FY25 to INR 36,332 Cr in the reviewed quarter, operating revenue increased by 15%. During the reviewed quarter, RIL’s net profit increased 16% YoY to INR 22,146 Cr, while its gross revenue increased 10% YoY to INR 2.83 Lakh Cr.
Quick Shots
•Reliance
Retail’s JioMart has extended its “quick” delivery service to 1,000+ cities,
covering over 5,000 pincodes across India.
•Unlike
10-minute rivals (Blinkit, Zepto, Instamart), JioMart delivers within 30
minutes, focusing on reliability and reach.
•JioMart’s
daily orders surged 200% YoY and 42% QoQ, reflecting strong adoption of its
quick delivery model.
•Platform’s seller network grew 20%
YoY, adding 58 lakh new customers in Q2 FY26, up 120% QoQ.
According to state minister TRB Rajaa, Reliance Consumer Products Limited will invest INR 1,156 crore to establish an integrated manufacturing facility in Tamil Nadu. The plant will be established in SIPCOT Allikulam Industrial Park in Thoothukudi, Tamil Nadu, the State Industries Minister wrote in a post on X.
Over the next five years, 2,000 jobs in Tamil Nadu will be created by the Reliance facility, he said. According to Rajaa, this 60-acre factory will concentrate on producing a variety of goods, including biscuits, atta, spices, edible oil, and regional munchies. For TN, it will create 2,000 local jobs over the next five years.
Investments Pouring In for TN
Two Central Government Public Sector Undertakings (PSUs), Cochin Shipyard Ltd and Mazagon Dock Shipbuilders Ltd, had previously announced plans to invest a total of INR 30,000 crore to build state-of-the-art Greenfield commercial shipyards in Tamil Nadu, significantly enhancing the state’s industrial landscape.
MoUs would create 55,000 jobs and signal Tamil Nadu’s notable ascent as a global centre for shipbuilding and maritime innovation, according to a social media post published by BJP politician Amit Malviya.
According to the BJP leader’s post, Cochin Shipyard Ltd. has invested INR 15,000 crore and created 10,000 jobs (4,000 direct and 6,000 indirect) in Phase 1. Mazagon Dock Shipbuilders Ltd.: 45,000 employees (5,000 direct, 40,000 indirect) | INR 15,000 crore investment.
Together, these two Ultra Mega MoUs will create 55,000 jobs and solidify Tamil Nadu’s position as a global centre for shipbuilding and maritime innovation, Malviya continued. This is a wave of growth, sustainability, and future possibility, not just an investment. “We appreciate Prime Minister Narendra Modi’s vision and steadfast support of Tamil Nadu’s development, he opined.
Raja praised Chief Minister MK Stalin’s leadership for these advancements and added that Tamil Nadu continues to draw major national FMCG companies to the state under the Dravidian Model leadership of Chief Minister Thiru. MK Stalin avargal, and the state is not ignoring any significant sector.
Reliance Retail to go Public Soon
As the oil-to-telecom giant founded by billionaire Mukesh Ambani prepares for an IPO for its retail division, Reliance Industries Ltd has moved all of its consumer goods brands to a new wholly-owned company.
The brands that were previously in the ownership of Reliance Retail Ltd., Reliance Retail Ventures Ltd., and Reliance Consumer Products Ltd. have been transferred to the so-called New Reliance Consumer Products Ltd., or RCPL. These brands include clothing, fashion, food, personal care, and beverages.
Quick
Shots
•The facility will be set up in SIPCOT
Allikulam Industrial Park and will span 60 acres.
•The project is expected to create
2,000 jobs in Tamil Nadu over the next five years.
•The plant will manufacture a range of
FMCG products including biscuits, atta, spices, edible oils, and regional
snacks.
•Tamil Nadu’s industrial push
continues with INR 30,000 crore investment from Cochin Shipyard and Mazagon
Dock Shipbuilders.
According to various media reports, Mukesh Ambani, who announced that Reliance Industries’ telecom division, Reliance Jio, would go public next year, is also working on listing Reliance Retail, which may be valued at around $200 billion.
With the demerger of the fast-moving consumer goods (FMCG) division, Reliance Consumer Products, which will now be a direct subsidiary of Reliance Industries, the process of shrinking and simplifying Reliance Retail, the biggest retailer in the nation, has already begun.
According to sources, the FMCG demerger and the rationalisation of Reliance Retail’s store network—which includes eliminating underperforming locations—are being carried out to increase the company’s margins with the goal of obtaining a favourable valuation so that it can enter the market.
Providing a Healthy Exit Opportunity to Investors
Although it is still early, there are signs that a public offering is imminent, with Reliance Jio’s listing coming a year later in 2027. Investors like Singapore’s GIC, the Abu Dhabi Investment Authority, the Qatar Investment Authority, KKR, TPG, Silver Lake, and others will have exit opportunities as a result of the listing.
Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven, Reliance Jewels, and other formats will remain part of Reliance Retail following the split of Reliance Consumer. After receiving all necessary regulatory permissions, the demerger of Reliance Consumer is anticipated to be finished by the end of this month.
Financial Dynamics of Reliance Retail
Reliance Retail has been streamlining its shop network over the last few quarters by shutting down underperforming locations. Reaching a double-digit operating margin is the goal. Reliance Retail reported $2.9 billion in operating profit on $38.7 billion in revenue in FY25. In FY25, its EBITDA margin was 8.6%; in the June quarter, it increased slightly to 8.7%. According to sources, although the discussions are still in their early stages, there might even be a consolidation of the models.
Dunzo Write-off & Market Strategy
All of Reliance Retail’s investments in the now-defunct hyperlocal delivery business Dunzo have been formally wiped off. The conglomerate’s 78,923 equity shares of Dunzo, which were internally valued at INR 1,645 Cr in FY24, were worth nothing during the fiscal year under review, according to Reliance Industries Ltd.’s (RIL) FY25 annual report.
According to the report, the now-defunct business generated INR 1 Cr in operating revenue in FY25. This comes more than seven months after Reliance Retail, the biggest shareholder in the hyperlocal firm, wrote off its $200 million investment in it, according to various media reports.
Kabeer Biswas, the CEO and cofounder of Dunzo, left his position that same month to join Flipkart’s Minutes, a fast commerce startup.
Quick
Shots
•Mukesh Ambani eyes $200 billion IPO
valuation for Reliance Retail.
•Reliance Jio listing expected in
2027, Reliance Retail IPO likely before that.
•FMCG arm Reliance Consumer demerged
into a direct subsidiary of Reliance Industries.
•Retail rationalisation underway –
closing underperforming stores to improve margins.
The acquisition of Kelvinator by Reliance Retail Ventures Limited (RRVL), a division of Reliance Industries, represents a calculated move into India’s growing consumer durables market. Reliance Retail’s unparalleled distribution power and Kelvinator’s legacy are intended to be combined in this purchase.
Known throughout the world for being the first to use electric refrigeration and in India for its iconic reputation since the 1970s, Kelvinator contributes more than a century of innovation to the ecosystem of Reliance Retail.
Reliance’s objective of increasing the accessibility of cutting-edge home appliances for Indian households is in line with the brand’s reputation for dependability, performance, and affordability. Through this acquisition, Reliance may capitalise on Kelvinator’s strong customer base and expand its product line in the high-end appliance sector.
The Acquisition Marks a Strategic Move by RRVL
By fusing local size with global innovation, Reliance Retail seeks to democratise access to aspirational products. In India’s changing home appliance market, the combination of Reliance’s retail strength and Kelvinator’s heritage is anticipated to increase category presence and provide value for customers.
According to RRVL Executive Director Isha M. Ambani, the acquisition strengthens the business’ objective to provide solutions that are ready for the future, backed by its extensive service and distribution network. With 19,340 locations and partnerships with more than 3 million merchants, RRVL runs a strong omnichannel platform.
With an FY25 EBITDA of INR 25,053 crore and a consolidated turnover of INR 3,30,870 crore, RRVL is further solidifying its leadership in a variety of retail verticals. It is anticipated that the inclusion of Kelvinator will further quicken RRVL’s pace in the rapidly expanding durables industry.
With this acquisition, Reliance will be directly competing with domestic giant Voltas, which dominates the air conditioning sector, and international brands like Samsung and LG, which now hold sizable market shares in appliances.
In response to growing consumer demand in the industry, Reliance and Kelvinator have both laid forth plans to invest in capacity expansion, product development, and broader distribution.
India’s Consumer Durable Market Growing Strongly
The market for electronics and consumer durables in India is growing quickly. Industry projections indicate that the Indian Appliances and Consumer Electronics (ACE) market would almost double in size by 2025, reaching a value of about INR 1.48 lakh crore (US$17.93 billion).
The refrigerator market in India is anticipated to increase from INR 46,732 crore in 2024 to INR 104,713 crore by 2033, while the air conditioner market is anticipated to develop at a compound annual growth rate (CAGR) of 20.8% to reach US$9.8 billion by FY26.
According to ICRA statistics, the room air conditioner market is predicted to expand by 20–25% annually in FY25, reaching 12–12.5 million units, thanks to favourable market circumstances and growing demand.
Realiance Retail, the nation’s foremost retailer, is investing in the expansion of its coverage area by opening dark stores. In the March quarter, the company experienced a 2.4x increase in the number of orders from its rapid commerce/hyperlocal delivery service.
During the earnings call earlier this week, Reliance Retail’s CFO Dinesh Taluja stated that the company saw a tremendous scale-up in the March quarter, with orders growing by more than 2.4 times. According to Taluja, Reliance Retail is now experiencing very significant traction, as evidenced by a 2.4x increase in daily exit orders from quarter to quarter.
Additionally, this figure will increase significantly during the next 12 months. Customers continue to respond favourably to the company’s offer of no hidden fees, fast delivery, and no delivery charges; thus, the company is also beginning to aggressively market this offering, as per Taluja.
Reliance Retail Operates Quick Commerce Through JioMart App
Reliance’s network of existing stores provides hyper-local deliveries, which are sub-30-minute deliveries, to 4,000 pin codes throughout the country. This network has a significantly greater reach than any other quick commerce participant in the country.
Reliance Retail offers three different sorts of services, including scheduled and expedited deliveries, through its JioMart app. There is a rapid service that takes less than 30 minutes, a scheduled delivery service with a considerably larger selection, and a subscription service where customers can sign up to have daily items brought to their doorsteps in the early hours of the morning. All three of them are picking up quite nicely, Taluja said.
He added that, on a year-over-year basis, the average daily orders had increased by 62%. In particular, the brand’s 30-minute or less offering, which has the broadest network coverage. More than 4,000 PIN codes are covered by the company’s nearly 2,000+ networked stores.
Therefore, compared to other rapid commerce players, this has a far greater reach. JioMart has essentially changed its business strategy to deliver goods in less than 30 minutes.
New Business Strategy to Expand Network
Taluja claims that Reliance Retail is utilising its network of stores to deliver within a three-kilometre radius as part of the goal. JioMart will open dark shopfronts in a few niche markets.
JioMart will also open some dark stores in areas where there is a real need, a sufficient volume, and the company is unable to fulfil it in 30 minutes.
That’s the rapid commerce aspect of it, then. On a stand-alone basis, the company’s stores have experienced double-digit growth over the past few quarters. Thus, stores are expanding quite quickly as well.
“We are not seeing that impact either in metro or in any other city,” he stated. In a same vein, Reliance Retail has introduced same-day and next-day delivery in 26 locations for its online fashion firm Ajio.
“So, we are increasing the speed at which we are able to deliver the products,” he stated. Reliance Retail reported gross revenue of INR 3.30 trillion for the 2024–25 fiscal year, up 7.85%, and profit after tax of INR 12,388 crore, up 11.33%.
Mukesh Ambani and his daughter Isha Ambani are reportedly considering job and cost reductions as sales of Reliance Retail declines sharply. This includes reducing marketing expenditures, postponing the opening of new stores, combining Reliance Brands Ltd. with the bigger retail company, and reevaluating international brand alliances. Additionally, higher-paying staff will only be employed with the chairman’s office’s consent. According to a media agency, Reliance Retail is concerned about a slowdown in sales after brokers valued the company at only $50 billion, half of what it was worth when it raised capital two years ago.
Cutting Down on Expenses
According to the media agency’s claim, which cited company documents, Reliance Retail reduced the number of new stores it opened and laid off 38,000 workers in 2024. The business also reduced marketing expenditures on its web platform called Ajio. Recruiting staff members making more than $22,890 a year now requires direct approval from Ambani’s office as of October. Even hiring more employees than the authorised plan requires permission from V. Subramaniam, Managing Director of Reliance Retail. Previously, lower-level supervisors were in charge of making these choices. The report further states that these changes are an attempt to demonstrate to investors that the business is progressing, particularly in light of the fact that last year a number of brokerages, including Sanford C. Bernstein and Kotak Institutional Equities, reduced its valuation.
Decline in Sales in Retail Sector
Sales growth in organised retail categories like clothing, footwear, cosmetics, and QSR fell to a mid-single digit last year, down from 15% in 2022, according to the Retailers Association of India (RAI). The majority of merchants consequently shut down a number of unprofitable locations; this trend is anticipated to continue as businesses look to increase profitability. Businesses attribute the slowdown in spending to a number of causes, including high food inflation, low pay increases, consumer debt, a sluggish pace of job creation, and rising housing costs and rental prices. At the same time, prices continued to rise, particularly for real estate.Since these leases are long-term—seven to nine years—and corporations were hesitant to sign them, the market saw rental prices sort of soar following FY23 and the COVID boost.
As a result, most of the companies chose to slow down. Simply hitting a number and signing a document that will later come back to haunt the company is not a sensible course of action. Kaushal Parekh, chief financial officer at Metro Brands, elaborated on that point by saying that the market is currently witnessing a minor falling off in terms of rental expectations. Players are thus given the chance to press the paddle. Additionally, businesses have consistently stated that you may notice retailers moving a little more slowly when there is excessive market enthusiasm. Additionally, businesses will endeavour to promote the greatest rental deals when they observe the market getting a little more pessimistic and the environment improving.
Nearly five years after the fast-fashion giant’s app was blocked in India due to rising diplomatic tensions between India and its neighbour, China, Isha and Mukesh Ambani’s Reliance Retail has successfully reintroduced Shein in India. Shein has returned to one of Asia’s biggest retail markets with the recently released Shein India Fast Fashion app, which was created under a license agreement with Reliance.
Reliance’s control over operations and data, with all consumer information retained in India, is one of the strict requirements attached to this agreement. The action also represents a change of strategy for Reliance, which aims to expand its online presence by providing Shein’s well-liked, reasonably priced clothing on a completely localised platform.
Nearly five years after its app was banned in India due to diplomatic concerns between China and India, Reliance Retail has formally restored its presence in the country by launching a new app to sell fashionwear from China’s Shein. According to sources, the app, Shein India Fast Fashion, was secretly released on Saturday morning; however, Reliance has not yet released an official statement.
Why Shien is Riding on Reliance’s Back?
Founded in 2012 in China and currently based in Singapore, Shein gained popularity for selling stylish yet reasonably priced Western clothing. It suffered a blow in 2020, though, when India blocked Shein and other Chinese apps like TikTok due to national security concerns in the midst of escalating border issues between the two nations. As a result, customers could no longer access the site, which had been very popular in India.
Shein is currently reviving in India despite the setback thanks to a license agreement with billionaire Mukesh Ambani‘s Reliance Retail. Reliance will pay a licensing fee to use the Shein brand name as part of this partnership, but no equity investment will be made.
The transaction marks a substantial departure from Reliance’s typical approach, even if the company has not yet made the financial details public. With the new agreement, Shein will have a dedicated platform for Indian consumers instead of just adding foreign brands to its existing Ajio fashion app, where it presently sells brands like Superdry and Gap.
Shein’s return is significant since the business will be operating under strict guidelines. Shein will only serve as a technological partner, while Reliance will maintain exclusive control over the platform and its operations. The fact that all client data would be kept locally in India and that Shein will not have access to it is a key requirement of this relationship.
This action supports the Indian government’s initiatives to preserve sensitive consumer data and uphold data sovereignty. To guarantee adherence to India’s stringent data standards, Shein will also need to submit to routine security audits conducted by cybersecurity companies that have been approved by the government.
What New Shein India App Will Offer
Dresses for as little as 199 rupees (about $2.30) are among the many affordable fashion items available on the new Shein India app. Customers will first be able to use the app in a few cities, including Bengaluru, Mumbai, and New Delhi, with hopes to quickly expand to more areas. One of the app’s noteworthy characteristics is that, in keeping with India’s efforts to strengthen its domestic textile sector, all Shein-branded products offered through the platform would be created and produced locally by Indian producers.
Why It’s a Win-Win Deal for Both Reliance and Shein?
Reliance’s decision to relaunch Shein in India is a component of a larger plan to bolster its online presence and subvert the dominance of competitors like Flipkart, Amazon, and Meesho, particularly in the fiercely competitive fashion e-commerce market. Even though it has the biggest retail chain in the nation, Reliance has had difficulty breaking through in the online retail space. With the recent introduction of quick delivery options like same-day delivery under 30 minutes for some orders on its Myntra platform, Flipkart in particular has been a formidable rival in the fashion e-commerce market.
As it gets ready for a possible public listing, this partnership offers Shein a calculated chance to re-enter one of Asia’s biggest and fastest-growing retail sectors. Following its unsuccessful bid to list in the United States due to lawmakers’ concerns about China’s rules that companies seek government approval before listing overseas, the platform has been preparing to go public in London later this year.
Over 300 platforms have been impacted by India’s continuous prohibition on Chinese applications since 2020; this cooperation is a rare exception. Several Indian government agencies, including IT and Home Affairs, conducted a thorough screening procedure before approving Shein’s return, paying particular emphasis to making sure Shein complied with the country’s strict cybersecurity and data protection regulations. The alliance intends to support the expansion of India’s textile manufacturing industry while protecting data privacy and national security objectives, according to Commerce Minister Piyush Goyal.
All things considered, Shein’s return to India under the Reliance collaboration marks a dramatic change in the fast-fashion sector in India and not only a win for Shein but also for the changing nature of global trade in the area. Shein’s affordable products, along with Reliance’s wide distribution and domestic production, have the potential to upend the competitive environment as the company continues to establish itself in the Indian retail sector, especially in the online fashion retail space.
According to a media outlet, Kabeer Biswas, a cofounder of the hyperlocal delivery service Dunzo, is expected to become the chief of operations at Flipkart Minutes. Following the departure of numerous other cofounders, including Mukund Jha, Dalvir Suri, and Ankur Agarwal, in recent months, Dunzo has been going through a difficult time. Reliance Retail, Dunzo’s biggest stakeholder, recently wiped off its $200 million stake in the business. Additionally, it was stated that due to its financial difficulties, Reliance Retail will not be purchasing Dunzo or investing more money in it.
Denzo Navigating Through Troubled Waters
Due to Dunzo‘s problems—such as a liquidity shortage and a retreat from fast commerce—Biswas began searching for possible purchase opportunities and reportedly valued Dunzo at about INR 300 Cr, or $25–30 million. Compared to the $770 million valuation of its most recent investment round, in which Reliance contributed funds, this represents a significant decrease. Over the past year and a half, these difficulties have caused employees’ salaries to be delayed. In addition, the business has looked into possible buyout discussions with Tata’s BigBasket and Swiggy, although the conversations most likely failed. Reliance Retail looked into the idea of purchasing Dunzo at a much lower price earlier this year. Notably, Biswas told staff members in July that major investors, such as Reliance Retail, had promised to contribute more money to the business. This funding, though, never materialised.
In 2014, Dunzo began as a WhatsApp group and has now raised nearly $400 million from investors including Reliance, Google, Blume Ventures, Lightrock, and additional companies. Even though it developed into a strong hyperlocal competitor that faced off against Swiggy Instamart, Tata BigBasket, and Blinkit, which is owned by Zomato, the company suffered from excessive capital burn and a more competitive environment.
With Biswas, Flipkart Miniutes Likely Gain an Edge
Having spent more than ten years in the industry, even before rapid delivery became a popular trend just a few months ago, Biswas’s leadership of Flipkart Minutes is likely to give the Walmart-owned company an advantage over other major players in quick commerce, including Zomato-owned Blinkit, Swiggy Instamart, Zepto, Tata BigBasket, and others. Given that Flipkart Minutes launched just in August 2024—many months later than the others—and that it still has some catching up to do, this is particularly important.
Hemant Badri, Flipkart’s senior vice president (SVP), is probably going to collaborate closely with Biswas. In April 2022, this development first appeared in the media that Badri had been given more responsibility as the leader of Flipkart’s rapid commerce initiative. Badri is the head of supply chain for the e-commerce giant Flipkart, where he has worked for more than three years.
According to many news sources, Reliance Retail, the biggest shareholder in the struggling hyperlocal firm Dunzo, has wiped off its $200 million investment in the business. Following the company’s liquidity crunch and withdrawal from rapid commerce during the last 24 months, Reliance is also not engaged in any discussions to invest in Dunzo or buy it in a distressed sale. Kabeer Biswas, the CEO and cofounder of Dunzo, is currently spearheading negotiations with family offices and wealthy individuals for an acquisition deal that would value the business at INR 300 Cr ($25–$30 million).
Biswas has received assurances from Reliance that they will help him save Dunzo. However, they have no interest in purchasing Dunzo. Two to three years prior, Biswas had rejected their buyout bid, which sought to acquire the hyperlocal business at a valuation close to unicorn. However, according to a media report, Reliance had no interest in Dunzo at all as speedy commerce companies entered the market and Dunzo’s failure to expand beyond a few locations.
Reliance Executives and Other Investors Stepping Down
In 2023, key executives Ashwin Khagiwala and Rajendra Kamath of Reliance Retail, as well as representatives from Lightrock and Lightbox, among other investors, resigned from Dunzo‘s board. The rumoured $30 million price tag for the company’s acquisition would represent a huge decrease from the $770 million Dunzo demanded in its most recent investment round, when Reliance provided the funding. According to reports, Biswas has also discussed a buyout with Flipkart, Swiggy, Tata Group, and Zomato but has not been successful. According to sources, Dunzo has closed in other cities but is still active in some areas of Bengaluru. At the moment, the business continues to operate according to its previous strategy of linking internet customers with nearby merchants.
According to reports earlier this week, Biswas has informed investors of his intention to leave the company. The CEO plans to leave after completing any possible acquisition agreement. Reliance Retail contributed $200 million to Dunzo’s $240 million fundraising round in January 2022. Reliance Retail made its biggest investment in the Indian startup scene with this venture. The acquisition of edtech firm Embibe for INR 1,340 Cr, Clovia for INR 950 Cr, and NetMeds for INR 620 Cr are some of Reliance Industries’ other noteworthy investments. It was considered a sort of strategic investment at the time. Reliance and Dunzo planned to collaborate, with the former facilitating hyperlocal logistics for JioMart and Reliance’s network of retail locations.
The Reason for the Downfall
By 2022, the quick commerce game had altered, even if Dunzo had made it through the busy cycle and hyperlocal boom of 2015. Dunzo’s model was feeling dated, and the quick commerce sector started sprawling its nexus. In an attempt to compete with Blinkit, Instamart, and Zepto, the business started Dunzo Daily, but it was unable to grow outside of Bengaluru, Mumbai, and Delhi. Although it is evident in retrospect that the $240 million investment was insufficient to capitalise on the swift business opportunity, Zepto’s explosive growth brought a third competitor to the market, joining Zomato’s Blinkit and Swiggy-owned Instamart. Just like Zepto, Dunzo was unable to take advantage of this chance. Reliance Retail wants to investigate the rapid commerce possibilities with JioMart in light of Dunzo’s issues. Additionally, Dunzo’s financial condition has deteriorated over the last two years, resulting in significant budget cuts, a long list of unpaid invoices to suppliers, and the departure of founders and important executives.
