Reliance has picked 25.5% stakes worth $240 million in Dunzo – a Google-backed hyperlocal delivery startup, as the largest Indian retail chain expands to the instant commerce space.
Dunzo is a six-year-old startup that operates an eponymous hyperlocal delivery service in seven cities of India including Delhi, Bengaluru, Gurugram, Pune, Chennai, Mumbai, and Hyderabad. Its headquarters are in Bengaluru and Hyderabad.
Reliance invests $200 million in Round-A worth 25.8% stake in the startup. In this regard, Isha Ambani, director of Reliance Retail Ventures Limited, stated that “We are seeing a shift in consumption pattern 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”.
“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,” she added.
Dunzo provides multiple services to the customers, from allowing them to buy a wide range of items such as grocery, perishable, medicines, food to moving their own items like laptops, charges, and other items around the city.
Dunzo entered the instant delivery space in Bengaluru, offering deliveries in 15-20 minutes. The startup has seen 20% week-on-week growth without disclosing any figures.
With this, Dunzo is planning to expand its service to more geographics ━ an additional eight cities ━ and broaden its commerce with the fresh fund.
Kabeer Biswas, co-founder, and chief executive of Dunzo, said the startup has found a long-term partner with whom we can accelerate growth and redefine how Indians shop for their daily and weekly essentials.
Further, he added, “We are excited by the traction and velocity that Dunzo daily has achieved and over the next three years as we aim to establish ourselves as one of the most reliable quick commerce providers in the country.”