[Funding alert] Dunzo raises $40M in Series E round from Google, Lightbox, others
Bengaluru-based hyperlocal delivery platform Dunzo has raised $40 million in Series E funding led by Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada, and Alteria, among others.
The focus of this fundraise is to execute the company 2021 strategy, and focus on its local commerce platform.
Kabeer Biswas, CEO and Co-founder, Dunzo, said in a press statement shared by the company,
“Dunzo's mission resonated stronger than ever in 2020. We have been amazed by everything merchants and users have started to depend on the platform for. We truly believe we are writing a playbook for how hyperlocal businesses can be built with sustainable unit economics and capital responsibility. As a team, we are more focused than ever to enable local merchants to get closer to their users and build one of the most loved consumer brands in the country.”
The team added it will focus on deploying its playbook for sustainable growth across its fastest-growing cities such as Mumbai, Chennai, and Pune. Dunzo has shown a GMV growth of 2X over the past year, and has an annualised GMV of $100 million. The company stated growth in 2020 comes on the back of strong, organic user demand while maintaining Gross Margin Profitability for the overall business.
"As merchants go digital, Dunzo is helping small businesses in their digital transformation journey in support of business recovery," said Caesar Sengupta, VP, Google in a press statement.
Over the past six months, Dunzo has supported over 300 neighbourhoods across eight cities, and has delivered essential goods to users within 29 minutes.
"Dunzo has been a pioneer in the hyperlocal delivery and ecommerce space. With the market potential and size of the urban convenience seekers increasing across Tier I and Tier II cities, Dunzo’s strong value proposition makes it a bold venture ripe for success. Its playbook on profitability has further instilled confidence in its ability to grow sustainably and we look forward to being a part of its story." said an Evolvence spokesperson.
The company stated it is looking to mobilise Indian cities and empowering the merchant ecosystem has made it the ‘go-to’ local commerce product in the country. As cities reopen, it continues to see strong growth across user segments.
"We are very excited to have been part of Dunzo’s journey from the start and believe they are building a beloved consumer services brand that redefines hyperlocal supply chains and empowers small merchants, partners, and consumers alike," said Vaidhehi Ravindran, Principal, LGT Lightstone Aspada.
Edited by Megha Reddy