🇮🇳 Dunzo gets $240m delivery in Reliance-led round

Dunzo, an India-based hyperlocal delivery firm, has raised US$240 million in its financing round led by Reliance Retail Ventures, with participation from existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital.

Inside Dunzo’s dark store / Photo credit: Dunzo

With an investment of US$200 million, Reliance Retail owns a 25.8% stake in Dunzo on a fully diluted basis.

Launched in 2015, Dunzo aims to transform the Indian retail landscape by empowering micro, small, and medium-sized enterprises with digital tools. For users, it offers a full stack of services that touch on the commerce, courier, and commute segments.

Additionally, Dunzo and Reliance Retail will also enter into certain business partnerships, where the former will enable hyperlocal logistics for the retail stores operated by the latter. Dunzo will also facilitate last-mile deliveries for the merchant network of JioMart, a unit under Reliance Retail.

“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,” said Isha Ambani, director of Reliance Retail Ventures.

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The fresh capital will be used to help Dunzo enable instant delivery of essentials from a network of microwarehouses. The company also seeks to expand its B2B business vertical to enable logistics for local merchants in Indian cities.

Earlier this year, Dunzo launched its instant delivery model, Dunzo Daily, in Bengaluru. The service is seeing an over 20% week-on-week growth.

Another player in the growing crowd of quick commerce apps, Zepto, recently raised US$100 million in a series C financing round led by Y Combinator’s Continuity Fund. Zepto is currently valued at US$570 million.