Bangalore-based e-commerce startup Dunzo has recently raised $45 million from Google, Lightbox Ventures, STIC Investment and STIC Ventures, and 3L Capital in its latest financing round. With this Series D round, the startup is now valued at about $200 million.
Dunzo, in total, has raised $81 million till now.
The startup will utilise the newly gained capital to expand its technology infrastructure and develop partnerships with small and medium businesses to “give them a fighting chance” to compete with major giants.
It will also deploy these funds towards positioning itself as a logistics player in India, picking up and dropping almost anything that consumers would desire, while also partnering with small and medium businesses to integrate them with its platform.
E-commerce accounts for less than 3% of all retail sales in India, according to industry estimates. Dunzo is one among a number of startups in India which are helping small and micro merchants integrate with technology for the first time to grow their businesses.
Kabeer Biswas, the CEO and co-founder of Dunzo, said that the startup has always focused on building a reliable business model while ensuring consumer empathy in every action, further adding that over the past year, it has built a model that understands consumer behaviour in Indian cities at a deeper level, while providing impetus to the small and medium businesses.
Dunzo has always focused on building a reliable business model while ensuring consumer empathy in every action that we take as a platform. Over the last year, we have built a model that understands Indian cities deeply and empowers offline commerce to deliver to consumers instantly. We believe in giving local merchants a fighting chance while creating sustainable earning opportunities for delivery partners. We are on course to build the largest commerce platform in the country with the most efficient logistics solution for each city.”
With the rapid growth in its business, Dunzo is now giving appreciable competition to food and grocery delivery startups like BigBasket, Swiggy, and Zomato. Interestingly, the food and beverages category already provides a quarter of all deliveries which it processes.
Recently, the company has initiated the test delivery of smartphones and other products. Dunzo recently tied up with Xiaomi to deliver smartphones to users in certain chosen parts of the country, while also having tested such a partnership with Puma. While Amazon and Flipkart take around two days to deliver a phone Dunzo is making the smartphone deliveries in under 30 minutes.
Even after considering the advantage of delivery time over other delivery giants Dunzo still remains very small when compared to the pre-established delivery companies. About 2 million orders a month, with an average delivery taking 28 minutes across 9 cities, are delivered via Dunzo from just 50,000 in last year. While Swiggy and Zomato deliver more than 3 million orders a day and they are also heavily funded.
Last month Swiggy announced Go, a service that allows users in select cities in India to deliver any kind of item, not just food, within their own city, thereby entering Dunzo’s territory. While Swiggy moves beyond food delivery, Zomato is increasingly trying to assume more control over the ins and outs of the food business.
The 11-year-old firm is working on something it internally calls Project Kisan to procure supplies directly from farmers and fishermen. The company has already set up warehouses to store these supplies in many parts of the country, including South Delhi and Pune.
Dunzo, founded by Kabir Biswas, Ankur Aggarwal, Dalvir Suri and Mukund Jha in 2015, is a four-year-old startup that operates a hyper-local delivery service, accessible over chat. It acts as a task-management app, where users create to-do lists which are then fulfilled by the startup’s delivery and merchant partners.
Users get access to a wide-range of items across several categories including grocery, perishables, pet supplies, medicines to dinner from their neighborhood stores and restaurants. The startup aims on building the largest e-commerce platform in India with a highly-efficient logistics solution for each city.
Dunzo is currently operational in eight Indian cities which are Bangalore, Delhi, Noida, Pune, Gurgaon, Powai, Hyderabad, and Chennai. Part of the service’s perk is that its delivery is fast i.e. under 25 minutes as long as the store is not very far away. Also, it doesn’t cost more than a dollar to get almost any random item of your choice anywhere within the city to the place or person you want it to get delivered to.