Dunzo's Struggles Lead To A Strategic Shift Back To B2C
Dunzo Returns to B2C
Dunzo is refocusing on its B2C operations, scaling down its B2B services. The B2B segment primarily served Reliance’s JioMart, but lacked a national network to compete effectively.
Challenges in B2B
Dunzo failed to expand its client base amid growing quick commerce and D2C sectors. Fundraising efforts were hindered, and reliance on a few clients hurt the business.
Financial Woes
Dunzo’s losses surged to INR 1,801 Cr in FY23, despite attempts to cut costs. The company faced severe cash flow issues and defaulted on payments to key vendors.
Legal Troubles
Dunzo is facing insolvency pleas from vendors due to unpaid dues. Creditors have also filed applications under the Insolvency and Bankruptcy Code, further complicating matters.
Future Prospects
While Dunzo struggles, competitors like Blinkit and Zepto thrive. The potential for integration with JioMart remains, but Dunzo needs Reliance’s support to survive.