Reliance Retail has led a $240 million funding round in quick commerce firm Dunzo, according to a statement by the company. Reliance Retail said with an investment of $200 million it will own 25.8% stake in the Bengaluru-based startup.
Dunzo’s existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in this round. In a prepared statement, Reliance Retail said the capital will be used to further Dunzo’s vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses. It will also expand its business-to-business (B2B) business vertical to enable logistics for local merchants in Indian cities.
“We are seeing a shift in consumption patterns 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,” said Isha Ambani, director, Reliance Retail Ventures Limited. She further said that through a partnership with Dunzo, Reliance 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,” she added.
“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.” said Kabeer Biswas, cofounder and CEO, Dunzo.