Kabeer Biswas has launched a new consumer-focused AI startup called “M” and is raising about ₹102 crore. The round is led by Peak XV Partners, with participation from Blume Ventures and CRED. The company plans to develop AI products for everyday users, though specific offerings have not been disclosed.
Background and funding
Investors backing “M” include established venture firms and corporate investors, indicating strong market interest in consumer AI. The capital raise aims to support product development, hiring and go-to-market activities as the team builds prototypes and tests early use cases.
What happened with Dunzo
Biswas co-founded Dunzo, a rapid delivery and task service that grew rapidly in cities such as Bengaluru. The business pivot to quick commerce required heavy subsidies and increased cash burn. At its peak, Dunzo reportedly burned over ₹100 crore a month and posted losses of around ₹1,800 crore in FY23.
Reliance Industries invested $200 million in 2022 but later wrote off a ₹1,645 crore stake. Operational challenges, including salary delays, followed. Dunzo eventually shut down in early 2025.
New partnership and strategy
After Dunzo’s closure, Biswas briefly led Flipkart Minutes, Flipkart’s quick commerce arm, leaving the role in October 2025. He has now teamed up with Kartik Mishra, a former Dunzo colleague, to build “M”.
The new startup will target the expanding AI market in India, focusing on consumer-facing applications rather than enterprise-only solutions. With experienced founders and fresh capital, “M” aims to learn from past operational challenges and pursue a more sustainable growth path.
Context for Indian startups
The rise and fall of Dunzo illustrates the risks of capital-intensive quick commerce in India. Investors and founders are increasingly cautious, favouring unit economics and sustainable growth. Consumer AI presents a different set of opportunities and risks, where product-market fit and efficient monetisation will be key to long-term success.
