Can anyone here tell me what exactly went wrong with Dunzo... I was working on a case study related to the same... Would certainly help me a lot
Not an expert but here's my take:
Seems like (yet another) classic case of (significantly) overestimating TAM to raise $ followed by inability to catch up to valuation
Raised $200M from RIL. They were promised another $500M by foreign investors if they could show insane growth. Spent all the $200M for growth at poor economics. Zero Interest Rate Market died. Foreign investors backed out. Now they don't have money to sustain. Not able to raise more funding in this environment.
Watch this channel 'backstage with a millionaire' on YouTube. They have covered this in detail.
Terrible economics. Spent 2000 crore to make 180 crore in FY23. Glorified courier service.
In an inherently conservative spending market. Making this profitable is a tall order. Ecosystem is also not kind to profits but obsessed with growth. And now there are multiple orga struggling to make money.
What made dunzo fall so bad. They seemed to be doing good. Can someone share what major mistakes they made that have led to such heavy cash flow issues.
Hard-core banglorean here.
Seen dunzo grow from when it was a WhatsApp group in Indiranagar to when it became a verb. What happened to dunzo?
Call it not understanding what I have read or just plain lazy, I am not able to fathom wh...
They just couldn't deliver.