Reliance Retail has led a USD 240 million worth funding round in Dunzo, a hyperlocal delivery firm backed by Google. The recent development echoes on Indian retail giant’s push into the instant commerce space, a category that has made considerable progress in the South Asian market in recent quarters.
According to reliable sources, Reliance Retail has invested around USD 200 million for a 25.8% stake in Dunzo, which specializes in eponymous hyper-local delivery services in various Indian cities. The Bengaluru-based Dunzo is now valued at USD 775 million following the new funding, which also saw participation from existing including investors Lightrock, 3L Capital, Lightbox, and Alteria Capital.
The Director of Reliance Retail Ventures Ltd. Isha Ambani stated that the group has been witnessing a change in consumption patterns online and are amazed by Dunzo’s disruption in the space. She added that Dunzo is the pioneer of quick commerce services in India and is looking forward to seeing them as the country’s prominent local commerce enabler.
For those unaware, Dunzo is known to allow users to buy a variety of things from their local retailers and restaurants, ranging from groceries, pet supplies, and medicines to meals. Consumers may also use Dunzo to transport their belongings throughout the city.
Dunzo entered the Bengaluru instant delivery space last year, promising customers delivery in 15 to 20 minutes. The firm claimed to be growing at a rate of over 20% each week without disclosing any numbers.
According to industry estimates, e-commerce represents less than 3% of all retail sales in India. The majority of sales in the country are driven by brick and motor stores and other local retailers that may be found in tens of thousands of cities, towns, villages, and slums across the country.
Dunzo is seeking to redefine how e-commerce and delivery services are conducted in India, posing a threat to Amazon and Walmart-owned Flipkart, as well as local food and grocery delivery firms like Zomato, Swiggy, and newcomer Zepto.