Dunzo, a leading player in the quick commerce category, announced on Thursday that it has raised $240 million in its latest round of funding led by Reliance Retail Ventures Limited (Reliance Retail).
The latest round of funding also got participation from existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital.
With an investment of $200 million, Reliance Retail will own 25.8 per cent stake on a fully diluted basis, Dunzo and Reliance Retail said in a joint statement.
"This round is a reinstatement of confidence of existing and new investors in Dunzo's potential and success in creating an exceptional user experience," it said.
The capital will be used to further Dunzo's vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities, it added.
Commenting on the investment deal, 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 said.
Dunzo has established itself as a market leader in the quick commerce category in India, which has an addressable market opportunity of over $50 billion.
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 per cent 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.
"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," said Kabeer Biswas, CEO and Co-Founder, Dunzo.
"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," Biswas said.
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.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor