Reliance Retail leads $240-mn spherical in Dunzo, picks up 25.8%

Reliance Retail Thursday introduced acquisition of 25.8% stake in Google-backed hyperlocal fast commerce startup Dunzo, in what marks the entry of India’s largest retailer in a section crowded by established and new gamers corresponding to BigBasket, Swiggy, Blinkit, Zepto, and so on.
In a press release, Reliance Retail mentioned it has led a $240 million funding spherical in Dunzo, of which it has put in $200 million. This values the Bengaluru-based startup at a bit over $775 million. The spherical additionally noticed participation from Dunzo’s current traders, together with Lightbox, Lightrock, 3L Capital and Alteria Capital.
“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,” the assertion mentioned.
Currently, Dunzo is accessible throughout seven metro cities in India and the assertion mentioned that the extra capital might be used to develop the fast commerce enterprise to fifteen cities. Earlier this yr, Dunzo launched its instantaneous supply mannequin ‘Dunzo Daily’ in Bengaluru, and has been witnessing greater than 20 per cent week-on-week development. The Dunzo Daily mannequin delivers every day and weekly necessities inside 15-20 minutes, with a give attention to offering top quality fruit and veggies.
This funding is predicted to provide a booster shot to Dunzo’s fast commerce ambitions in a market the place newer names had overtaken the startup on its house turf. Recently, food-delivery platform Swiggy dedicated a $700 million funding in its q-commerce vertical Instamart. Mumbai-based startup Zepto, which was based by two Stanford University dropouts, final month raised $100 million in Series C funding led by Y Combinator’s Continuity fund, valuing the 10-minute grocery supply agency at $570 million.

In addition to the funding, Dunzo and Reliance Retail may even enter into enterprise partnerships, whereby Dunzo will allow hyperlocal logistics for the retail shops operated by Reliance Retail, so as to add onto Reliance Retail’s omni-channel capabilities. Also, Dunzo will facilitate final mile deliveries for JioMart’s (Reliance’s on-line grocery platform) service provider community.
Notably, Dunzo had additionally reportedly been in talks with the Tata Group for an funding by way of which the conglomerate needed to choose a majority stake within the startup. This deal was being explored by the Tata Group to provide a leg as much as its e-grocer BigBasket’s fast commerce plans.