Flipkart Hires Dunzo Co-founder for Quick Commerce Expansion

Flipkart Appoints Dunzo Co-founder to Lead Quick-Commerce Expansion

Flipkart has brought on Kabeer Biswas, formerly the co-founder of Indian delivery service Dunzo, as the company strengthens its presence in the rapidly growing quick-commerce sector within India.

Leadership Role and Previous Acquisition Considerations

According to a source with direct knowledge of the situation, Biswas will be responsible for overseeing Flipkart’s quick-commerce initiative, known as Flipkart Minutes. This appointment follows earlier discussions from approximately one year ago regarding a possible acquisition of Dunzo by Flipkart.

Ultimately, the potential acquisition did not proceed due to complexities surrounding Dunzo’s ownership structure. Reliance Retail, a significant investor in Dunzo, has since diminished its investment in the startup.

The Rise of Quick-Commerce in India

While the quick-commerce model – promising delivery within 10 to 15 minutes – has faced challenges in many global markets, it is gaining considerable traction in India.

Numerous companies, including Swiggy, Nykaa, and other retailers and internet businesses, are actively enhancing their supply chain infrastructure to facilitate these faster delivery times.

Current Market Leaders and New Entrants

Currently, Zomato’s Blinkit, Swiggy’s Instamart, and Zepto are the dominant players in the Indian quick-commerce landscape. However, this has not discouraged larger companies from entering the market.

Flipkart launched Minutes last year, and Amazon initiated a pilot program for its own quick-commerce service just last month.

Strategic Focus on Urban Consumers

Flipkart intends to leverage quick commerce to reach consumers in urban areas of India, where Amazon has historically held a stronger market position. The company has already established over 100 dark stores – strategically located warehouses – and is now offering higher-value items, such as laptops and smartphones, through its quick-commerce application.

Dunzo's History and Challenges

Established in 2014, Dunzo was a pioneer in exploring the quick-commerce model. Supported by investors like Google, Blume Ventures, and Lightbox, the company aimed to disrupt India’s e-commerce sector by providing rapid delivery of groceries, household essentials, and other goods within 30 minutes.

Despite raising over $500 million in funding, Dunzo struggled to gain significant market share as competition intensified.

Biswas' Recent Activities

Prior to joining Flipkart, Biswas, alongside former colleagues, had been exploring new business ventures and presenting concepts to venture capital firms, including Peak XV.