Reliance Retail has invested $200m in the company to acquire a stake of 25.8%
A Dunzo delivery partner in Bengaluru. (Credit: Business Wire)
Dunzo, an Indian hyperlocal quick commerce company, has secured $240m in its latest funding round that was led by Reliance Retail Ventures, a subsidiary of Reliance Industries.
Existing investors Lightbox, Lightrock, Alteria Capital, and 3L Capital also took part in the funding round.
On its part, Reliance Retail invested $200m in Dunzo to acquire a stake of 25.8%.
Dunzo is expected to use the proceeds of the funding round to advance its goal to become the largest quick commerce business in India.
The company is focused on facilitating the instant delivery of essentials from a network of micro warehouses. It also plans to use the capital for growing its B2B business vertical to enable logistics for local merchants across cities in India.
Presently, Dunzo is available in seven metro cities in India. The new capital will be used by the start-up to grow its quick commerce business to 15 cities.
In June 2021, the company had launched its instant delivery model dubbed Dunzo Daily in Bengaluru. The service offers delivery of daily and weekly essentials, particularly fruits and vegetables, within 15-20 minutes.
Dunzo CEO and co-founder Kabeer Biswas 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 & weekly essentials.”
Apart from taking part in the funding, Reliance Retail has secured hyperlocal logistic services from Dunzo for its operated retail stores. The latter will also enable last mile deliveries for the merchant network of JioMart, an e-commerce company owned by Reliance Industries.
Reliance Retail Ventures director Isha Ambani said: “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.”