Hyperlocal task management startup Dunzo now expands to Mumbai

Apart from Mumbai, the startup already has a presence in Bengaluru, Hyderabad, Delhi, Gurugram, Chennai as well as Pune.

Hyperlocal task management startup, Dunzo, went on to its social platforms Twitter and Facebook to announce that they have officially expanded into Mumbai. However, the delivery startup stated that its services will be limited to only suburbs of Powai, at present. 

Apart from Mumbai, the startup already has a presence in Bengaluru, Hyderabad, Delhi, Gurugram, Chennai as well as Pune. Also, in the past few months, the company has raised additional capital of Rs 80 crore ($11.5 million) in funding from different investors, including Google. 

Dunzo Founders - Ankur Aggarwal, Mukund Jha, Kabeer Biswas and Dalvir Suri

Founded in 2015 by Kabeer Biswas, Ankur Aggarwal, Dalvir Suri, and Mukund Jha, Dunzo first started operations on WhatsApp. Today, Dunzo uses Artificial Intelligence (AI) to manage customers tasks that include fetching something a customer forgot, asking for a pickup-and-drop, as well as buying grocery and household items. 

This March, the Bengaluru-based startup also introduced 'Checkout with Dunzo', a new B2B logistics service for retailers and small business owners.

The service opened up its possibility to tie-up with any store, which has an online presence through its website or app, empowering businesses of any size to have hassle-free logistics support.

The service, similar to a payment option, lets users opt for faster delivery through a Dunzo partner, at the time of checkout.

In a recent interview with YourStory, Dunzo CEO Kabeer Biswas said that 80 percent of the tasks currently on Dunzo are completely automated and run without any human intervention. This is what has enabled them to scale.

In October last year, Dunzo completed over two million transactions to date. It completes an average of 65,000 to 75,000 transactions every day across the cities, it operates in.

At present, Dunzo charges its merchant partners a commission ranging between 10 and 12 percent of the total delivery cost. The company has tied up with over 350 merchants across the four cities it operates in.

However, according to the industry, Mumbai is considered to be one of the toughest markets for hyperlocal startups. 

At the start of this month, Mumbai-based task management startup RUSSSH shut shop and terminated all services as of June 3. The fact that RUSSSH was self-funded and lacked the capital required to take on deep-pocketed competitors in the space proved to be the startup's undoing.


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