Mumbai: Billionaire Mukesh Ambani-led Reliance Retail has acquired a significant 25.8 percent stake in India’s leading instant commerce company Dunzo for $200 million, prompting the start-up to be another unicorn.
Existing investors Lightbox, LightRock, 3L Capital, and Alteria Capital invested a further $40 million in the company in the latest fundraising round, reaffirming the confidence of existing and new investors in Dunzo’s ability to deliver great user experiences.
“This fund will be used to enable Dunzo to become India’s largest rapid commerce company by expanding its B2B business vertical to enable instant delivery of essential commodities from a network of micro warehouses and provide logistics for local merchants in Indian cities. to help achieve the target,” said one. Company statement.
In India, Dunzo has established itself as the industry leader in the rapid commerce category, with a market opportunity of over $50 billion.
Dunzo is currently available in seven Indian metro cities; The additional funds will be used to expand Rapid Commerce Company to another 15 locations.
Dunzo launched its instant delivery model, ‘Dunzo Daily’ in Bengaluru earlier this year, and has seen a week-on-week growth of over 20 per cent. The Dunzo Daily model, which focuses on supplying high quality fruits and vegetables, meets 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 exclusive business partnerships.
Dunzo will enable hyperlocal logistics for retail stores operated by Reliance Retail, further enhancing Reliance Retail’s omnichannel capabilities. Dunzo will also facilitate last-mile delivery for JioMart’s merchant network.
Speaking on investing, Isha Ambani, Director, Reliance Retail Ventures Limited said, “We are seeing a change in consumption patterns online and have been very impressed by how Dunzo has disrupted the space. Dunzo is a pioneer of accelerated commerce in India, and we look forward to supporting them in pursuing their ambitions of becoming a leading local commerce promoter in the country. Through our partnership with Dunzo, we will be able to offer greater convenience to the customers of Reliance Retail and differentiated customer experience through faster delivery of products from Reliance Retail stores. Our merchants will have access to Dunzo’s hyperlocal delivery network to support their growth as they move their business online through Jio Mart. ,
Kabeer Biswas, CEO and co-founder, Dunzo, “Since our inception, we have been focused on providing an unmatched customer experience, and this funding round is a great validation of our vision. I am proud of the team for tirelessly building this category over the past three years and am 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 define how Indians shop for their daily and weekly essentials. We are excited by the traction and velocity Dunzo Daily has gained, and over the next 3 years, we aim to establish ourselves as one of the most reliable instant commerce providers in the country. ,
Morgan Stanley acted as a special financial advisor, and Cyril Amarchand Mangaldas acted as Dunzo’s legal advisor. AZB & Partners acted as legal advisor to RRVL and Deloitte, Haskins & Sells LLP provided financial due diligence services.
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