News: Reliance Retail leads $240-million funding round in Dunzo

Funding & Investment

Reliance Retail leads $240-million funding round in Dunzo

This will be Reliance’s second entry into the grocery delivery space, besides its own JioMart service. Last year, it acquired Milkbasket, which delivers milk and daily staples to households in Delhi, Bengaluru, and other cities.
Reliance Retail leads $240-million funding round in Dunzo

Quick-commerce startup Dunzo has raised $240 million in a funding round led by Reliance Retail Ventures Ltd (RRVL), according to a statement released by the two companies. 

The retail arm of Reliance Industries Ltd, India’s largest conglomerate, pumped $200 million in the on-demand delivery startup, picking up a 25.8% stake in the Bengaluru-based company and valuing it at $800 million. Competition in the country’s rapid-delivery space is heating up, and the capital raise would help Dunzo compete better with other online grocery platforms like Blinkit, Swiggy Instamart and BigBasket.    

Dunzo's other investors include Google, Blume Ventures, Aspada Investments, Lightrock, LightBox Ventures, STIC Ventures, Alteria and 3L Capital.

Dunzo, set up in 2016, aims to use the funds to expand its operations and become the largest quick-commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses. It also plans to grow its B2B business vertical to enable logistics for local merchants in Indian cities.

Isha Ambani, Director, Reliance Retail, 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.”

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.

Kabeer Biswas, Dunzo’s co-founder, said, "Since our inception, we have been razor-focused on providing an unmatched customer experience and this funding round is a validation of our approach. I am proud of the team for tirelessly building the category over the last three years. With the 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." 

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Topics: Funding & Investment, Technology, #Innovation

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