Dunzo, which pioneered in India the concept of delivering almost anything to anyone within a city, has raised $240 million in a funding round led by Reliance Retail Ventures. On its own, Reliance Retail has invested $200 million for a 25. 8% stake in the Bengaluru venture. Existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital also participated in the round.
Dunzo will use the funds to strengthen its position in the quick commerce business, enabling instant delivery of essentials from a network of micro warehouses, and to expand its B2B business vertical that provides logistics for local merchants in Indian cities. Under the partnership with Reliance Retail, Dunzo will provide hyperlocal logistics for the retail stores operated by Reliance, and facilitate last-mile deliveries for JioMart’s merchant network.
Reliance Retail Ventures director Isha Ambani 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 beco- ming 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 the 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 JioMart. ”
Quick commerce is said to have an addressable market opportunity of over $50 billion. Currently, Dunzo is available across seven metro cities in India and the additional capital will be used to expand the quick commerce business to 15 cities.