ZestyMarshmallow

Dunzo for dummies.

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 what happened to a company that was the OG of its industry and grew with 0 marketing and solely on the product and how it happened.

Anyone care to simplify it and explain?

14mo ago

Find out if you are being paid fairly.Download Grapevine

SwirlyTaco

Stealth14mo

They just couldn't deliver.

BouncyLlama

Cred14mo

I see what you did there

FuzzyNoodle

Stealth14mo

@Krypto Reward him/her with some cred coins 💀

MagicalQuokka

Stealth14mo

Founders were employees with little to no stakes or incentives.

They got involved with Reliance.

FluffyNugget

Swiggy14mo

Had a shitty af engineering legacy tech stack which led to their downfall as they were too slow to changing markets and competition outpacing them in every single way.

SqueakyPretzel

Amazon14mo

Not an expert on the tech side of things. But could you please elaborate how engineering might be responsible for the downfall. I'm curious

SillyPretzel

Stealth14mo

Pretty harsh to blame on engineering.

SparklyNugget

Stealth14mo

When you sell a dollar for 90 cents, you will have a very strong PMF and positive demand but a perpetual negative cash flow/EBITDA/bleeding business.
Only businesses which are able to turn this around are pure play tech first businesses which can scale tech at 0 marginal cost, not logistics businesses like Dunzo where every sale fulfillment has negative contribution margin and operations heavy.

PeppyMochi

Stealth14mo

Their unit economics were profitable and growing when they were doing P2P and B2B.

The problem started when dark store model started gaining traction (Zepto, Blinkit etc) and even they switched to it out of FOMO. They turned into a loss making machine who couldn’t raise money as fast as they were burning it.