From Acquisition Talks to Talent Shift: Flipkart Taps Dunzo's Kabeer Biswas for Quick Commerce Boost

Dynamic, challenging, lucrative, competitive, and what more! These terms perfectly define India’s quick commerce sector today as the 10-minute delivery has been making headlines over the past few years. The latest is Reliance Retail-backed Dunzo which lost its charm years ago. But the cash-strapped-hyperlocal delivery platform once again became the talk of the town with its sole remaining cofounder and CEO Kabeer Biswas planning to quit the start-up.

His departure would mark the end of an era for Dunzo because other cofounders --- Mukund Jha, Dalvir Suri, and Ankur Agarwal --- have already departed. Agarwal and Jha have reportedly exited the platform to launch their own ventures, while Suri is expected to be on a career break since his exit from Dunzo in 2023.

Now, the buzz around Biswas’ exit has not only reignited readers’ interest in Dunzo’s fate but also in his next move. As per MoneyControl reports, the only remaining cofounder might take his talent to ‘Flipkart Minutes’, the ecommerce giant’s quick commerce segment. Interestingly, the Walmart-backed company once tried to acquire Dunzo amid its financial crunches, though the deal ultimately fell through. The company, however, has now attracted its top talent instead.

Read More | Why Dunzo is Battling Financial Insolvency and Vendor Dues

Flipkart-Dunzo Acquisition Talks: A Throwback

Walmart-supported Indian ecommerce giant Flipkart was in talks to acquire Dunzo in February 2024. However, the discussions had hit roadblocks due to complexities in Dunzo’s ownership structure which has prevented both parties from reaching a consensus. The challenges for Dunzo didn’t stop there, its largest shareholder Reliance Retail which acquired a 26 per cent stake in the quick commerce company for $200 million in 2022, also didn’t approve the deal. It increased further troubles in the negotiation process.

At that time, neither Flipkart nor Walmart gave any official confirmation about the acquisition discussions. Even Dunzo had stated that the platform did not engage in any discussions regarding the acquisition of their business by any other entity.

Flipkart which was valued at $32 billion at the time of acquisition talks saw potential in specific aspects of Dunzo’s business, especially its business-to-business offerings. However, the Walmart subsidiary remained cautious about the assets it wanted to inherit in acquiring Dunzo, given the start-up’s significant intellectual property ties with India’s largest retail chain Reliance Retail.

Besides Flipkart, Dunzo also explored acquisition discussions with various other businesses, including Tata and Zomato, TechCrunch had reported. But Dunzo refuted the reports, calling it “hearsay”.

Interestingly, Google, a common investor in both Dunzo and Flipkart, plays a pivotal role in this dynamic. Months after Google's participation in Flipkart’s $950 million fundraising round, where it invested $350 million, the tech giant became a shareholder in both companies. While it owns roughly 1 per cent of Flipkart, it holds a much larger 19 per cent stake in Dunzo, further linking the two ventures as they compete in the quick commerce space.

Read More | The Dunzo Dilemma: A Deep Dive Into The Hurdles, Departures, And Financial Worries

Flipkart Minutes Taps Dunzo Veteran

Biswas has spent over a decade at Dunzo. Now, he is likely to join Flipkart Minutes as head of operations and may work closely with Hemant Badri (senior vice president at Flipkart), according to a report published by MoneyControl. The ecommerce giant has made an offer to Biswas and if the discussions are successful, he will join Flipkart Minutes soon.

With his extensive experience in the rapid delivery sector, Biswas’ entry to Flipkart Minutes may give the Walmart-owned company an edge over other quick commerce majors like Blinkit, Zepto, Swiggy Instamart, BigBasket, and others. Plus, Flipkart Minutes has gone live in August 2024, only a few months ago, entering the market later than its established competitors.

This transition comes at a time when Dunzo is grappling with severe financial challenges, including mounting debt, layoffs, and Reliance Retail writing off its $200 million investment in the start-up. Reports clarified that Dunzo will continue its usual operation, but the question arises: Can it regain its earlier position, or is it too late to reclaim its place in the highly competitive quick commerce market?