Kabeer Biswas: Navigating Dunzo’s Growth Amidst Challenges and Critics

In the dynamic world of hyperlocal delivery start-ups, Kabeer Biswas stands out as the co-founder and CEO of Dunzo, a Bengaluru-based venture that has garnered attention, investment, and criticism. In a recent interview, Biswas addressed some of the key concerns surrounding Dunzo, including its losses, growth strategy, and the unwavering support from investors.

Known for his nonchalant attitude, Biswas dismisses criticism with a simple philosophy – if you’re a Dunzo user, he’ll go above and beyond to solve your problem; if not, he’s indifferent to your views. Clad in a Dunzo-branded blue jacket during a chilly Friday morning Zoom call, the 35-year-old entrepreneur exudes confidence amidst the scrutiny surrounding the company’s financial performance.

Dunzo’s financial journey has been a rollercoaster ride, drawing both praise and skepticism. In 2019, critics highlighted a substantial loss of Rs 168.8 crore against an operational revenue of Rs 77 lakh. The following fiscal year saw revenue surge to Rs 27.5 crore, but losses more than doubled to Rs 359.5 crore. Despite the financial challenges, Biswas remains unfazed, emphasizing that no single factor defines Dunzo’s success or failure.

Founded in 2015, Dunzo has secured $121 million in funding from notable investors, with Google leading a $12 million round in December 2017. Sid Talwar, a partner at Lightbox Ventures, attributes his confidence in Dunzo to Biswas’ genuineness and the start-up’s sound business strategy. Investors, according to Talwar, are not concerned about losses as long as the business strategy is solid, and consumers continue to embrace the service.

Biswas’s entrepreneurial journey has been marked by near-death experiences, with Dunzo facing a critical juncture in 2018 when funds were nearly exhausted. Reflecting on this challenging period, Biswas emphasizes the role of luck in building businesses and the importance of accepting uncertainties. Dunzo weathered the storm, securing additional funding and emerging with a more resilient approach.

Dunzo’s success is attributed to its unique value proposition in the hyperlocal delivery space. The platform, often colloquially used as a verb – “Dunzo it” – allows users to request anything, from mundane tasks to specific needs, and have them fulfilled promptly. The service gained popularity by addressing real-life needs, a fact illustrated by Sahil Kini’s blog recounting his first encounter with Dunzo, where Biswas delivered a milkshake within 20 minutes.

Beyond financial figures, Dunzo’s growth metrics tell a story of its own. The burn per order at the EBITDA level reduced, orders serviced skyrocketed from 6.54 million to 20.3 million, and the platform expanded its delivery partners and merchant base significantly. These indicators, according to Talwar, highlight Dunzo’s strategic focus and its potential to build the largest logistics network in India.

Unapologetically, Biswas expresses the need for more funding, signaling a future round in six months. He stresses that Dunzo is in its growth stage and acknowledges the possibility of new leadership if the company outgrows his capabilities. His commitment to the company’s mission – making daily life easier with a press of a button – remains unwavering.

In the ever-evolving landscape of hyperlocal delivery startups, Kabeer Biswas emerges as a resilient and pragmatic leader navigating Dunzo through challenges. His candid approach to criticism, unwavering investor support, and the platform’s unique value proposition position Dunzo as a force to be reckoned with in India’s digital economy. As the company continues to innovate and expand, Biswas’s journey and Dunzo’s growth remain captivating narratives in the startup ecosystem.