Reliance Retail-backed quick commerce platform Dunzo is shifting gears on its growth momentum after a hyperactive first half of the year in which it scaled operations of its 15-20 minute grocery delivery service Dunzo Daily.

In January, it closed a $240 million funding round led by Mukesh Ambani's Reliance Retail, which picked up more than 25 percent in the startup.

After that round, the company stepped on the gas as it looked to expand operations amid intense competition from rivals like Swiggy’s Instamart, Zepto, and BigBasket’s BB Now, a new entrant.

According to reports, it had a monthly burn of over Rs. 100 crore or around $15 million during the June quarter and in July.

As per reports, the one-time cost of advertising during the Indian Premier League (IPL) and marketing campaigns to expand Dunzo Daily.

The hyper growth era, however, is in the past now and the Bengaluru-based firm has told a select group of people that it needs to focus more on its expenses amid a slowdown in late-stage funding.

It is currently in the midst of funding talks and has engaged investment bank Morgan Stanley. Details of the potential funding round are yet to be finalized.

According to reports, the company is now aiming for a slower rate of growth for the rest of the year on a month-on-month basis. It is also pausing plans to expand from seven cities to 15 or 16. One of the presentation slides during an internal town hall had the header ‘let’s focus on unit economics’.

However, longer delivery will make more sense than even a 20-minute option. They are already seeing that in their batching algorithms and it brings service costs down per order.