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Reliance Retail has written off its $200 million investment in hyperlocal startup Dunzo, following the company’s cash crunch and retreat from quick commerce over the past two years, according to an Inc42 report.

Reliance, which holds a 25.8% stake in Dunzo from its investment in January 2022, is no longer involved in any discussions regarding additional funding or a distress sale.

Dunzo’s Kabeer Biswas is reportedly in talks with high-net-worth individuals and family offices for an acquisition deal, with the startup’s valuation set between Rs 300 crore ($25-$30 million), the report added.

Biswas recently resigned, joining co-founders Mukund Jha, Dalvir Suri, and Ankur Agarwal, who had already stepped down.

Dunzo had been in talks with Swiggy and Tata’s BigBasket for a potential buyout, but those discussions fell through, sources told Inc42. Despite aiming for its first profitable year in FY25, the company struggled to pay salaries for several months and settle dues for former employees.

Founded in 2014 in Bengaluru, Dunzo last raised $75 million in a Series F round of funding in April 2023, and had a post-money valuation of $744 million as of April 14, 2023, according to data from Tracxn.

However, most of its investors, including Reliance Retail, Google, and venture capital firm Lightbox, have now departed from the company’s board of directors.

Starting as a hyperlocal delivery service, Dunzo expanded into the quick commerce space but faced stiff competition from well-funded startups like Swiggy’s Instamart, Zepto, and Zomato-owned Blinkit.