Reliance Industries Officially Writes Off Its Entire Investment in Dunzo
- nvshah0610
- 3 days ago
- 2 min read

Reliance Industries Ltd (RIL) has formally written off its entire $200 million (approximately ₹1,645 crore) investment in quick‑commerce startup Dunzo, as disclosed in its FY 2025 annual report. The investment, which gave Reliance Retail a substantial stake of about 25.8%, has now been fully impaired, and Dunzo is no longer classified as a related party.
Background & Strategic Shift
Reliance Retail initially backed Dunzo in January 2022 through a $240 million round, acquiring a roughly 26% stake to bolster its last‑mile logistics capabilities and support JioMart’s quick‑commerce ambitions. However, over the following years, Dunzo faced steep financial headwinds: mounting losses, operational cash crunch, layoffs, unpaid dues, and a steep decline in valuation—now estimated at ₹300 crore ($25–30 million), a fraction of its previous $770 million valuation.
Immediate Effects & Strategic Outcomes
Financial Recognition: The write-off marks a clear exit from the venture, signaling Reliance's decision to cease further investment or support in distress sale discussions.
Board and Founder Transition: Dunzo’s last co-founder, Kabeer Biswas, is reportedly exploring exit options while negotiating with potential acquirers and investors, pending Reliance’s approval.
Stock Market Ramifications
Despite this sizable write-down, Reliance Industries’ stock showed only modest movement. On August 7, shares dipped approximately 0.15% to close at ₹1,390.85—underperforming slightly while the broader market saw gains. This muted response suggests that investors view the write-off as a contained strategic correction, unlikely to materially affect RIL’s broader financial outlook.
Summary Table
Aspect | Details |
Investment Write-Off | $200 million (~₹1,645 crore) fully impaired |
Reason | Dunzo’s steep decline in valuation, financial distress, and operational failure |
Strategic Shift | Reliance ending active involvement and distancing from quick-commerce venture |
Market Reaction | Slight stock dip (~0.15%), reflecting a controlled market response |
Next Steps | Potential founder exit and acquisition talks, subject to shareholder decisions |
Overall, Reliance’s decision to write off its Dunzo investment reflects a calculated strategic retreat from a faltering venture. While disappointing, the measured stock market response underscores investor confidence in Reliance’s diversified business strength and resilience.
source:-times of india,economic times