Mumbai: Billionaire Mukesh Ambani-led Reliance Retail has acquired a significant 25.8 per cent stake in India’s leading quick commerce player Dunzo for $200 million, pushing the start-up to another unicorn in the making.
Existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital pumped another $40 million into the company in the latest fundraising round, reaffirming existing and new investors’ faith in Dunzo’s potential and ability to deliver a fantastic user experience.
“The funds will be used to help Dunzo achieve its goal of becoming India’s largest rapid commerce company by enabling instant delivery of essentials from a network of micro warehouses and extending its B2B business vertical to provide logistics for local merchants in Indian cities,” said a company statement.
In India, Dunzo has established itself as the industry leader in the rapid commerce category, with a market opportunity of more than $50 billion.
Dunzo is currently available in seven Indian metro cities; the additional funds will be used to expand the rapid commerce company to other 15 locations.
Dunzo started its immediate delivery model, ‘Dunzo Daily’, in Bengaluru earlier this year, and it has seen a week-on-week rise of more than 20 per cent. The Dunzo Daily model, which focuses on supplying high-quality fruits and vegetables, delivers daily, and weekly requirements in 15-20 minutes.
Partnership With Reliance Retail
In addition to the funding, Dunzo and Reliance Retail will also enter into specific business partnerships.
Dunzo will enable hyperlocal logistics for the retail stores operated by Reliance Retail, further adding to Reliance Retail’s omnichannel 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.”
Kabeer Biswas, CEO and co-founder, Dunzo, said, “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. I am proud of the team for tirelessly building this category over the past three years and grateful to our investors for their continued support. 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.”
Morgan Stanley acted as an exclusive financial advisor, and Cyril Amarchand Mangaldas served 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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