Reliance Industries Ltd's retail arm has picked up a 25.8% stake in Dunzo, hyperlocal delivery firm, extending Mukesh Ambani's foothold in the fast-growing grocery delivery business. Reliance Retail led a $240 million fundraising round in Dunzo, investing $200 million in the Bengaluru-based startup. The financing included existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital. Google has already invested in the company.
In a statement, Dunzo said that it wants to utilise the new funding to speed up the delivery of essentials through a chain of micro facilities, as well as grow its business-to-business (B2B) vertical to facilitate logistics for small businesses throughout India.
Certain commercial alliances and funding will also be framed by Dunzo and Reliance Retail. Dunzo will improve Reliance Retail's omnichannel capabilities by enabling hyperlocal logistics for its retail stores. Moreover, Dunzo would also assist Reliance's JioMart network of retailers with last-mile deliveries, according to the release.
'Investment will be used to expand operations'
Kabeer Biswas, CEO and co-founder of Dunzo, "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 daily and weekly essentials. We're excited by the traction and velocity that Dunzo Daily has achieved."
The extra funds will be used to extend Dunzo's quick commerce operations from seven to fifteen cities. Last year, Dunzo launched its quick delivery service, 'Dunzo Daily,' in Bengaluru, which has seen a weekly growth rate of more than 20%. It claims to be able to provide daily and weekly essentials in as little as 15-20 minutes.
"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," added Isha Ambani, director, Reliance Retail Ventures Ltd.
