[Funding alert] Dunzo raises $240M led by Reliance Retail

Bengaluru-based hyperlocal delivery startup Dunzo has raised $240 million funding led by Reliance Retail. The retail giant has picked up 25.8 percent stake in the company.
217 CLAPS
0

Bengaluru-based hyperlocal, quick commerce startup Dunzo has raised $240 million in its latest round of funding, valuing Dunzo at $775 million.

The investment was led by Reliance Retail Ventures Limited (Reliance Retail), with participation from existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital.

Reliance Retail pumped in $200 million for a fully diluted stake of 25.8 percent in the company.

The capital will be used to further Dunzo’s vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities.

The startup launched its instant delivery model ‘Dunzo Daily’ in Bengaluru earlier this year, which is seeing over 20 percent week-on-week growth.

Kabeer Biswas, CEO and Co-founder of Dunzo | Image Source: Prime Venture Partners team

In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo said it will enable hyperlocal logistics for the retail stores operated by Reliance Retail, further adding onto Reliance Retail’s omni-channel capabilities. Dunzo will also facilitate last mile deliveries for JioMart’s merchant network.

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.”

Currently Dunzo is available across seven metro cities in India and the additional capital will be used to expand the quick commerce business to 15 cities.

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.

Morgan Stanley acted as an exclusive financial advisor and Cyril Amarchand Mangaldas acted as legal counsel to Dunzo, and PwC India provided financial due diligence services.

AZB & Partners acted as legal counsel to RRVL and Deloitte, Haskins & Sells provided financial due diligence services.

Edited by Megha Reddy

Latest

Updates from around the world