Reliance Retail buys stake in hyperlocal delivery company Dunzo for $200m
Reliance Retail Ventures, the retailing arm of Reliance Industries, has acquired a stake of 25.8% in Bengaluru-based hyperlocal delivery company Dunzo for $200 million.
Dunzo is engaged in providing instant delivery of essentials sourced from a network of micro warehouses. Its services are currently available across seven Indian cities.
Reliance Retail Ventures will avail Dunzo’s hyperlocal logistic services for its operated retail stores. Besides, Dunzo will provide last mile deliveries for JioMart’s merchant network.
Isha Ambani — Director of Reliance Retail Ventures said: “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.
“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. 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.”
The investment by Reliance Retail Ventures is part of the $240 million in funding raised by Dunzo. The latter’s existing investors — Lightrock, Alteria Capital, Lightbox, and 3L Capital also participated in its financing round.
The proceeds from the funding round are expected to help the hyperlocal delivery company in its journey to becoming one of the top quick commerce businesses in India by expanding into 15 cities.
Dunzo also intends to utilize the proceeds for growing its B2B segment to provide logistics for local merchants across India.
Kabeer Biswas — CEO and Co-Founder of Dunzo said: “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. 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.”