The investment was led by Reliance Retail Ventures (Reliance Retail), with participation from existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital.
Dunzo, India's leading quick commerce player on Thursday announced that it raised $240 million in its latest round of funding. Reliance Retail will own 25.8% stake on a fully diluted basis with an investment of $200 million.The capital will be used to help Dunzo to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses. Dunzo is also seeking to expand its B2B business vertical to enable logistics for local merchants in Indian cities.
Currently Dunzo is available across 7 metro cities in India and the additional capital will be used to expand the quick commerce business to 15 cities. Dunzo launched its instant delivery model 'Dunzo Daily' in Bengaluru earlier this year, which is seeing over 20% week on week growth. The Dunzo Daily model delivers daily and weekly essentials within 15-20 minutes, with a focus on providing high quality fruits and vegetables.
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 of Reliance Retail Ventures 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.
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Founded by Kabeer Biswas, Mukund Jha, Dalvir Suri, and Ankur Aggarwal, Dunzo is a hyperlocal quick commerce company that connects merchants, partners, and users to facilitate transactions across courier, e-commerce and merchant logistics.
RRVL is a subsidiary of Reliance Industries and holding company of all the retail companies under the RIL Group. Reliance Industries is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.
Shares of Reliance Industries closed 2.01% lower at Rs 2,416.60 on Thursday.
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