We are currently considering using DotNetNuke as a base for our future portal-based and client-customizable web application that is going to be hosted centrally. The idea is
I've been using it on and off since its beta nearly 2 decades ago and probably have a good 10k hours of my time invested in building website and web apps on top of DNN. Here is my take...
I know I'm late to the party, but for anyone else considering DNN, please realize that there is a good chance you'll regret it in the long run.
To Answer the OP's direct question, its not a terrible solution for building on, if, and only if the modules that your building don't need to interact with DNN core and are not content management centric. Its might be ok for a basic customer portal where you want users to be be able to login, access some info or assets, etc.
However there are some MAJOR drawbacks to DNN you should be aware of. I used to love it. Now days, I wouldn't even consider using it for a greenfield project.
Here are just a few of the issues with DNN:
I have a full, more detailed writeup on the drawbacks of DNN here on my blog. HTH