Dunzo Raises $240 Million Led by Reliance Retail

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Dunzo Raises 240 Million Led by Reliance Retail
Quick commerce company Dunzo has received 240
million in the latest round of funding that was
led by Reliance Retail Ventures Limited.
This round also saw the participation of
existing investors Lightbox, Lightrock, 3L
Capital, and Alteria Capital. Dunzo was
reported to be engaged in discussions with
Reliance for the past three or four months
regarding a possible agreement. There were
reports in the media suggesting that the
company was in discussions together with Tata
Group, Swiggy, and Zomato to discuss a fresh
round. But, the talks did not occur. On the
other hand, this deal with Reliance might be
seen as a shock, given Reliance Group's history
of making outright acquisitions (Netmeds,
Milkbasket) or fairly moderate valuations.
Even entering into companies that could be under
some sort of strain (the current Future Retail
buy). FOMO might have hit Reliance at last if
you're in the market for a quick trade. Also
read AgroStar Secured 70 Million in its Series
D Financing Round The round is in which
Reliance Retail has invested 200 million
to purchase a 25.8 percent share in
Bengaluru's company on a fully diluted basis. The
valuation of the Google-backed firm is up to 775
million. Based on Fintrackr's estimates, it was
valued at just over 300 million at the time of
its March launch of last year. According to
Dunzo, the capital is to expand Dunzo's goal
of becoming the most efficient and
quick-to-market business in India, which
will allow the delivery of necessities in
a matter of
2
minutes through a system of small
warehouses and growing its business segment
to provide logistics to local retailers within
Indian cities. As part of the collaboration,
Dunzo will provide hyperlocal logistics to
the retail stores run through Reliance
Retail and will also enable last-mile
deliveries for JioMart's merchant's network.
Dunzo introduced its instant delivery
model, 'Dunzo Daily, in Bengaluru at
the beginning of this year. The service is
currently available across seven cities the firm
is planning to expand its speedy commerce model
to fifteen cities. The fiscal year ended the
31st of March, 2021 where Dunzo reported its
profits from operations to increase by 66.5
percent to 45.8 crores from 27.5 crores it
earned in FY20. The Kabeer Biswas-led
company was able to cut its loss by 33.3 percent
from 338.4 million in FY20 to 225.7 million in
FY21. Also read Zepto on Its Way to Raise 250
Million The fast commerce market is growing
in India, where Zomato-backed Zepto BlinkIt
(formerly Grofers), Swiggy, and Ola are
already expanding their operations.
Swiggy has recently announced plans to invest
750 million into Swiggy Instamart to focus on
rapid commerce, while BlinkIt is said to be
seeking additional funding from Zomato.
Zepto, a grocery delivery service that can be
delivered in ten minutes. Zepto also secured
100 million in funding to increase its
coverage to several cities in India. For all
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