Reliance Industries Limited’s retail arm invested $200 million in Bengaluru-headquartered Dunzo. This capital push will help Dunzo to grow further and become the “largest quick commerce business in the country.”
Dunzo, a popular name among youngsters for instant deliver, raised $240 million in the latest funding round, led by Reliance Retail. Dunzo’s existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in this round.
This funding will help Dunzo in instant delivery of essentials from a network of micro warehouses. Moreover, it will also expand its B2B business vertical to enable logistics for local merchants in Indian cities. “This round is a reinstatement of confidence of existing and new investors in Dunzo’s potential and success in creating an exceptional user experience,” Reliance Retail said in a statement.
Available in seven metro cities in India, Dunzo has already established itself as the market leader in the quick commerce category. With the latest capital infusion, the platform aimed to reach 15 cities.
In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo 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.
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.
“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. 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 3 years, we aim to establish ourselves as one of the most reliable quick commerce providers in the country,” said Kabeer Biswas, CEO and co-founder, Dunzo.
Dunzo is a hyperlocal quick commerce company that connects merchants, partners, and users to facilitate transactions across courier, e-commerce and merchant logistics. It is backed by Reliance Retail, Google, Blume Ventures, Aspada Investments, Lightrock, LightBox Ventures, STIC Ventures, Alteria and 3L Capital. In 2021, Dunzo established the Dunzo Daily model using a network of micro fulfillment warehouses.
Morgan Stanley acted as exclusive financial advisor and Cyril Amarchand Mangaldas acted as legal counsel to Dunzo. AZB & Partners acted as legal counsel to RRVL and Deloitte, Haskins & Sells LLP provided financial due diligence services.
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