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.
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?
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.
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.
