Reliance pulls representatives from Dunzo’s board
Just read this after getting to know earlier today that one of the cofounders have resigned. Didnt even know that the cofounders never had a stake, they’d just get a salary. Super weird.
Extremely sad, I feel things wouldn't have been this bad if Reliance did not completely paralyze Dunzo
That's true. Probably not the last time it will happen to a startup too.
Very few people realising this. It’s hard to miss the patterns with what Reliance is doing.
Probably a reason to not raise from funds that are feeders to the Reliance ecosystem.
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Not the first nor the last. Haptik was probably one of the early ones that got arsenic poisoned post Jio acquisition. Slow slow death.
Reliance will continue to fiddle around the ecosystem and buy a random set of start ups. Mukess bhai's fuck-you-money account is a few billions. 250 mil written off makes no difference to his life.
Start Ups have to learn to get investors on board that have the right intent and roadmap aligned to their vision. Includes the testicular fortitude to say NO even to Warren Buffet.
In later stages, it's usually the greedy VCs that control the board and the cofounders are practically powerless. They definitely won't pass up on an opportunity to liquidate their positions to the Devil, let alone Reliance.
But I think here the issues is - Mishandling of payments, finances by Dunzo. It’s easy to demonise the bigger player (who’s answerable to shareholders), leaving the space for real culprit to walk free. Jio was also an acquisition which is a huge brand in itself now.
Bottom line is, we should try to understand “What went wrong for Dunzo?”. If founders had no equity, why they were sticking till now?
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Why would you ever let the cofounders lose all their stake in their company? That will leave little incentive for them to continue ensuring its success. They can land a similar paying job if it is just salary that they're getting.
I think they never had it from the start? Some differences that began early on?
Or that’s what I read
Wow, not having it from the initial stages is even more suprising. Extremely shocking if true.
I would say that is worse but it can be argued either way.
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Should’ve never gotten into the business of making dark stores and trying to fight Swiggy, Zomato, Zepto
It feels like that’s when their standing started to diminish. They really were #1 in P2P deliveries, now even that has gone away.
But what about needing to "increase our TAM"? What about "growth at all costs"? /s
P2P market is hella small, they would never have gotten more funding or matched their previous valuations if not for pivoting to dark stores. They tried but the competition was just faster and dunzos legacy tech prevented them for adapting and improving quickly.
Honestly I’m surprised Zepto came in and crushed Dunzo out of the market in mere months.
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Heard from a friend who used to work there, apparently they see employee count reducing majorly, week on week.
It’s extremely sad, and he actually used to speak very highly of the org at one point of time.
What's happening at Dunzo? Just now saw a Linkedin post that their head of product had also resigned.
SharpOmelet
Stealth
a year ago
I do not like her at all. Another hungry LinkedIn Influencer.
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FuzzyLogic
Stealth
a year ago
reliance will take over when Dunzo's valuation is at its lowest. See what happened to Future retail.
SharpOmelet
Stealth
a year ago
It’s a competitive world. Makes me sad so many times to think of the modern world we live in.
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Noctus
Stealth
a year ago
Rule 1: Never take investment from reliance
Sashaboi
Stealth
a year ago
So sad , i really really like dunzo as a product depressing seeing no delivery folks available, not available status on app, reflecting company health :(
Used to love their design and mascot
I feel they built it well
Recently deleted the app, and felt slightly bad that things didn’t work out after achieving so much
MrGandalf
Stealth
a year ago
Nothing good comes of any startup Reliance touches.
Dunzo is shopping for buyers aggressively. It’s pretty much the last moments unfortunately. It’s not going to work out.
CaptainLevi
Stealth
a year ago
I'd say they got what they deserved. Rise of startups that fail to post profits for years but keep hoarding vc money will most likely meet this fate.
Catwomen
Stealth
a year ago
All being said, sometimes when the co founders or founders want an exit they might decide on whom they want to take their fundings from.
It is quite shocking to learn that the co founder was being paid salary and had no stake but then again may be such agreements were made based on investment :work ratio.
There are number of cases wherein founders and co founders raise their fundings for better capital gains from big houses such as reliance to let go of the control of the company for a stress free exit.
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