Dunzo, a Bangalore based hyperlocal quick commerce platform, has now secured $240 million in its latest funding round, which valued the company at $775 million.
Reliance Retail led the funding round, with participation from existing investors Alteria Capital, Lightbox, 3L Capital and Light rock.
Reliance Retail has pumped in around $200 million for a fully diluted stake of around 26% stake in the company.
The company, as of now, has plans to use the new funds to further Dunzo mission to be the largest quick commerce business in the country by enabling instant delivery of essentials from a network of micro warehouses while also scaling its B2B business vertical to enable logistics for the local merchants in the Indian cities.
Dunzo launched its instant delivery model with the name ‘Dunzo Daily’ in Bangalore in the year 2021, which is seeing around 20% week on week growth.
Apart from the funding, Reliance Retail and Dunzo will also enter into various business collaborations. Dunzo also revealed that it would enable hyperlocal logistics for the retail stores owned and operated by Reliance Retail by further adding to the Reliance Retail omnichannel capabilities. Dunzo will also be going to facilitate the last-mile deliveries option for the JioMart merchant network.
As of now, Dunzo is available across the various metro cities in India and further raised funds will be used to scale the quick commerce business into more than 10 cities.
Kabeer Biswas, CEO and Co-founder, Dunzo, said,
“Since our inception, we have been razor focused on providing an unmatched customer experience and this funding round is a resounding validation of our approach. I am proud of the team for tirelessly building this category over the past three years and grateful to our investors for their continued support. With this investment from Reliance Retail, we will have a long-term partner with whom we can accelerate growth and redefine how Indians shop for their daily and weekly essentials."
"We’re excited by the traction and velocity that Dunzo Daily has achieved and over the next three years, we aim to establish ourselves as one of the most reliable quick commerce providers in the country.”
Speaking on the investment, Isha Ambani, Director, Reliance Retail Ventures Limited, said,
“We are seeing a shift in consumption patterns to online and have been highly impressed with how Dunzo has disrupted the space. Dunzo is the pioneer of Quick Commerce in India and we want to support them in furthering their ambitions of becoming a prominent local commerce enabler in the country."
"Through our partnership with Dunzo, we will be able to provide increased convenience to Reliance Retail’s consumers and differentiated customer experience through rapid delivery of products from Reliance Retail stores. Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through Jio Mart,” she added.