Meet man who built Rs 6502 crore company with backing of Mukesh Ambani, now cutting 75% workforce due to...

In 2015, a simple WhatsApp group was the birthplace of a transformative idea that would reshape local deliveries in India. But who was the mastermind behind this innovative leap? Enter Kabeer Biswas, the CEO and co-founder of Dunzo, whose story is as compelling as the company he built.

Kabeer Biswas, born in 1984, faced a life-altering event at just 19 when he lost his father. The inheritance he received provided a safety net, enabling him to venture into uncharted territories without the typical fears that accompany entrepreneurship. His mother’s understanding and the wealth left behind allowed him to explore bold ideas freely.

Educated in Electronics and Computers from the University of Mumbai and holding an MBA from NMIMS, Kabeer began his career at Bharti Airtel, followed by stints at Videocon Telecommunications and Y2CF Digital Media. His tenure at these companies honed his skills, leading to the creation of Hoppr, acquired by Hike in 2014. This experience set the stage for his most ambitious project: Dunzo.

Starting from a modest WhatsApp group, Kabeer and his team launched Dunzo in January 2015. The service initially catered to Bengaluru’s affluent neighbourhoods but soon expanded across major Indian cities. Dunzo’s success, marked by its innovative approach to hyperlocal delivery and its funding from Google in 2017. With services spanning groceries, medicines, and even bike taxis, Dunzo now handles ten lakh orders monthly, proving that a simple idea can evolve into a game-changing enterprise.

Recently Reliance-backed Dunzo has cut approximately 75% of its workforce, letting go of 150 employees as it grapples with severe financial difficulties. This drastic move, reported by Financial Express and executed on August 31, 2024, is part of a broader strategy to manage expenses and enhance cash flow amid mounting financial pressures. With only 50 employees remaining in its core supply and marketplace teams, Dunzo is struggling to meet its financial obligations, including overdue payments to employees and vendors. 

The layoffs come after failed attempts to secure a critical funding round in May 2024 and ongoing delays in promised funding, despite assurances to settle dues within 10-15 days. The company, which was once valued at Rs 6502 crore, is now focused on diversifying its revenue streams beyond its original merchant services to stabilise its finances.