Reliance Retail, subsidiary of Reliance Industries Limited has invested 200 million dollars in Dunzo for an exchange of 25.8% stake.
Dunzo is India’s fastest growing e-commerce player and it has raised a total of 240 million dollars in its recent investment drive. Other investors in the company are Lightrock, Lightbox, Alteria Capita and 3L Capital.
Market Value Of Dunzo
The capital will be used to fulfill future endeavors of the company. Currently, Dunzo is focused on enabling Instant Delivery of essential items. It will require setting of micro warehouses through out the city. The next target is to expand the business at B2B level and provide services to local grocery stores in the cities.
Currently, Dunzo is operating in 8 cities; Delhi, Bengaluru, Gurugram, Chennai, Pune, Jaipur, Hyderabad and Mumbai. The operations will be expanded to 15 cities in near future.
Reliance Retail said, “This round is a reinstatement of confidence of existing and new investors in Dunzo’s potential and success in creating an exceptional user experience.”
Dunzo Reliance Retail Partnership
It will be interesting to witness business partnership between Dunzo and Reliance Retail.
Dunzo will empower retail stores of Reliance Retail by providing them hyperlocal logistics, further adding onto Reliance Retail’s omni-channel capabilities. Dunzo will also facilitate last mile deliveries for Jio Mart’s merchant network.
Isha Ambani, Director Reliance Retail Venture Limited 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.”
Kabeer Biswas, CEO and Co-Founder, 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.”
Morgan Stanley acted as exclusive financial advisor and Cyril Amarchand Mangaldas acted as legal counsel to Dunzo. AZB & Partners acted as legal counsel to RRVL and Deloitte, Haskins & Sells LLP provided financial due diligence services.