What went wrong with Dunzo?

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

• They did $6mn revenue while raising at $800mn, that's a 125x EV/sales multiple (!)
• That means they will take 5 years to reach a reasonable IPO valuation IF they grow 100% yoy WITHOUT more funds - which is impossible
• Also, apparently CEO was fundraising full-time and COO was running the co

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.