Dunzo raises $240 million in funding round led by Reliance Retail

By

Isabelle Crossley

Published
Jan 7, 2022

Quick commerce business Dunzo has raised $240 million (Rs 1,596.7 crore) in a funding round led by Reliance Retail and participation from existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital.

Dunzo’s latest funding round saw Reliance Retail incest $200 million to own a 25.8% stake on a fully diluted basis, the business announced in a press release. Dunzo will use the funds from Reliance and other investors to further its vision of becoming the largest quick commerce business in India and expending its business-to-business services. 
 
“We are seeing a shift in consumption patterns to online and have been highly impressed with how Dunzo has disrupted the space,” said Reliance Retail Ventures Limited’s director Isha Ambani in a press release. “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,” said Ambani. “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.”
 
“Since our inception, we have been razor focused on providing an unmatched customer experience and this funding round is a resounding validation of our approach,” said Dunzo’s CEO and co-founder Kabeer Biswas in a press release. “I am proud of the team for tirelessly building this category over the past three years and 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 redefine how Indians shop for their daily & weekly essentials. 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.”
 
Kabeer Biswas, Mukund Jha, Dalvir Suri, and Ankur Aggarwal launched Dunzo in Bengaluru and the business operates in India’s top seven metros. Last year, the business launched its Dunzo Daily model which is designed to deliver an ameliorated logistics service.