Dunzo Cofounder Kabeer Biswas To Quit: Report

Kabeer Biswas, cofounder and CEO of Reliance Retail-backed hyperlocal delivery startup Dunzo, has reportedly resigned. 

“Biswas has resigned from the company and his resignation has been accepted, a formal announcement can be expected over the coming days,” Moneycontrol reported, quoting a source.

Biswas declined to comment on Inc42’s queries on the development. Lightbox, one of the earliest backers of the startup, also declined to comment on the story. 

Meanwhile, a report by Economic Times said that while the cofounder has “discussed” quitting the company with investors, a final decision is yet to be made.

“All options are on the table, including what happens to his remaining stake in the company. Reliance, however, hasn’t yet approved the proposal but continues to be in discussions on the matter,” the ET report quoted one of the sources as saying.

The development comes at a time when Dunzo is mired in a range of troubles – a severe cash crunch, layoffs, and bankruptcy petitions. 

Founded in 2015 by Kabeer Biswas, Dalvir Suri, Mukund Jha, and Ankur Aggarwal, Dunzo connects consumers with nearby stores and facilitates deliveries of products, including groceries, medicines, and food, among other daily needs. 

If Biswas quits, he would become the latest cofounder to exit the startup. Jha, Aggarwal and Suri have already left Dunzo. Earlier this year, it was also reported that the Bengaluru-based startup laid off 150 employees across supply and market verticals to cut costs.

The update comes on the heels of a report by ET saying that Dunzo cofounder Aggarwal is opening a new startup in the quick delivery space with a working name “Kuik”. The startup will help brands set up their quick delivery services for which it has already piloted three such stores in Bengaluru. 

The report added that Kuik is looking to raise a funding of about $3 Mn to $4 Mn from earlier investors of Dunzo. 

In the past, two of Dunzo’s creditors – Invoice Discounters of Dunzo Digital and Velvin Packaging – had sought insolvency proceedings against the startup for unresolved payments.

However, the exact amount Dunzo owes its creditors is unknown. Most recently, in September last year, the NCLT said that the startup failed to resolve its dispute with its creditors despite being given a time of 3 months.