Flipkart's Bold Move: Hiring Dunzo Co-Founder to Dominate Quick Commerce in India

Flipkart's Quick Commerce Ambitions

Flipkart has made a significant move by hiring Kabeer Biswas, the co-founder of Dunzo, to spearhead its quick-commerce initiative known as Flipkart Minutes. This strategy comes as the Walmart-owned e-commerce giant aims to expand its footprint in the fast-paced delivery sector in India.

The Context of the Move

This hiring decision follows nearly a year after Flipkart considered a potential acquisition of Dunzo, which ultimately fell through due to complications in Dunzo's ownership structure, notably with Reliance Retail being one of its major backers. Since then, Reliance has largely distanced itself from Dunzo.

Quick Commerce Landscape in India

While the quick-commerce model—delivering products within 10 to 15 minutes—has faced challenges globally, it is gaining traction in India. Competitors like Zomato's BlinkIt, Swiggy's Instamart, and Zepto currently lead this market. Despite this competition, Flipkart and Amazon are making strides to capture urban consumers, with Flipkart already establishing over 100 dark stores to facilitate rapid deliveries and even offering high-priced electronics through its quick-commerce platform.

Dunzo's Background

Founded in 2014, Dunzo was a pioneer in the quick-commerce space, aiming to revolutionize India's e-commerce by promising deliveries within 30 minutes. Despite raising over $500 million and backing from major investors like Google, Dunzo struggled to maintain its market position amidst increasing competition.

Kabeer Biswas's New Role

In his new role at Flipkart, Biswas is expected to leverage his experience in the quick-commerce sector to enhance Flipkart's offerings and compete effectively against rivals. He has also been exploring new ventures recently, engaging with venture capitalists like Peak XV for potential collaborations.