Google-backed Dunzo secures $11m from Alteria Capital

Dunzo, an India-based hyperlocal delivery startup, has secured US$11 million from local venture debt fund Alteria Capital.

It plans to use the fresh capital to work toward becoming a profitable local ecommerce company and scale its operations in already profitable markets.

Photo credit: Dunzo

Founded in 2015, Dunzo connects merchants, partners, and users to facilitate transactions across courier, commerce, and commute. It is present in eight cities in India, covering Bangalore, Mumbai, Delhi, Gurgaon, Chennai, Hyderabad, Jaipur, and Pune.

“Profitability has always been the barometer of success and we’re seeing it manifest across several of our micro markets,” said Kabeer Biswas, CEO and co-founder at Dunzo. “As markets turn profitable, we are able to fuel our growth with debt while having a significantly higher return on investment for customers and stakeholders.”

The round comes less than five months after it raised US$45 million in a round led by Lightbox, which brought the company’s valuation between US$180 million and US$200 million. The startup is also backed by Google, Blume Ventures, Aspada Investments, STIC Ventures, and 3L Capital.

The hyperlocal market in India is expected to exceed US$323 million in value by 2020, according to a report. The rapid growth of the market is driven by the huge penetration and increased usage of smartphones in India, the change in purchasing behavior of local consumers, and the rise of disposable income and curated products and services.