Reliance Pumps In Rs 1800 Crore Into Dunzo, Acquires 25% Stake: Threat For Grofers, BigBasket, Swiggy?
Reliance Industries’ retail arm Reliance Retail has invested $200 million in the leading quick commerce player Dunzo, now owning a 25.8% stake in the company, as per their press release on Jan 6, 2022.
Dunzo raised a total of $240 million in its latest round of funding, of which Reliance Retails invested $200 million, along with participation from existing investors, including Lightbox, Lightrock, and 3L Capital and Alteria Capita.
Dunzo Raises $240 million In Funding Round
Dunzo has raised $240 million in its latest round of funding, indicating new and old investors’ confidence in the company’s success and outlook on creating unique user experience.
The capital raised will be utilised 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, stated the press release.
At present, Dunzo has presence in 7 metro cities in the country, and the company now targets to expand 15 more cities with the latest funding raised.
The company has launched ‘Dunzo Daily’, its instant delivery model in Bengaluru, which is witnessing week-on-week growth of over 20%. It delivers essential items like fresh fruits and vegetables in 15-20 minutes of order placement.
The two companies will partner in certain parts of their businesses. For instance, Dunzo will allow hyperlocal logistics for Reliance Retail’s retail stores, and facilitate last-mile deliveries for JioMart’s merchant network.
What Does Dunzo and Reliance Retail Have to Say?
Speaking on RIL’s large investment in the company, CEO and Co-Founder of Dunzo, Kabeer Biswas says,
“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.”
At the same time, Reliance Retail says, “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 becoming a prominent local commerce enabler in the country.”