Reliance Retail backs Dunzo in $ 240 million financing

Reliance Retail led a $ 240 million fundraiser in Dunzo, a hyperlocal delivery startup backed by Google as India’s largest retail chain expands into the instant commerce space, a category that has made breakthroughs in the South Asian market in recent quarters.

Reliance Retail is investing $ 200 million in the turn for a 25.8% stake in the six-year startup, which operates a eponymous hyper-local delivery service in seven cities of India. The new round, whose name has not been released, values ​​the Bangalore-based startup at $ 775 million.

“We are seeing a shift in online consumption patterns and have been very impressed with how Dunzo has disrupted the space. Dunzo is the pioneer of rapid commerce in India and we wish to help them pursue their ambitions of becoming a major facilitator of local commerce in the country, ”said Isha Ambani, director of Reliance Retail Ventures Limited, in a statement.

“Our merchants will have access to Dunzo’s hyperlocal delivery network to support their growth as they move their business online through Jio Mart,” she added.

Dunzo enables its customers to purchase a wide range of items in multiple categories, from groceries, perishables, pet supplies and medicine to dinner at stores and restaurants in their neighborhood. They can also use Dunzo to move their own items – such as laptops, chargers, drugs, and meals – around the city.

The startup plans to expand to more geographies (eight additional cities) and expand its fast-paced trading game with the new funds, he said.

E-commerce accounts for less than 3% of all retail sales in India, according to industry estimates. Mom and Pop stores and other neighborhood outlets that dot tens of thousands of towns, villages and slums across the country generate most of the sales in the country.

In a way, Dunzo, which counts Blume Ventures and Lightbox and LGT Lightstone Aspada among its investors, is reinventing how e-commerce and delivery could be done in India, posing a challenge to Amazon and Flipkart owned by Walmart, as well as food and grocery delivery startups such as Swiggy, Zomato, BigBasket, and Grofers.

Kabeer Biswas, co-founder and managing director of Dunzo, told Reliance Retail – which is run by India’s richest man, Mukesh Ambani – the startup has found a “long-term partner with whom we can accelerate growth. and redefine the way Indians shop for their daily and weekly essentials. “

“We are excited about the traction and speed that Dunzo Daily has achieved and over the next 3 years we aim to establish ourselves as one of the nation’s most trusted fast trade providers. “

This is a developing story. More soon…

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