- The startup plans to focus on sustainable growth in cities such as Mumbai, Pune, and Chennai.
- Other investors, including Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada, Alteria, and others also participated in the funding round.
- Earlier in September 2020, It had raised $28 million from Google, LGT Lightstone Aspada, others.
Bengaluru-based hyperlocal delivery startup Dunzo has raised $40 million (or about Rs 292 crore) in its ongoing Series E funding round led by tech giant Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada, and Alteria, among others.
The startup will use the funding to execute its 2021 plans and will focus on sustainable growth across its fastest-growing cities such as Mumbai, Pune, and Chennai.
Earlier in September 2020, Dunzo had raised $28 million in its first tranche of Series E funding round from Google, LGT Lightstone, Lightbox, 3L Capital, among others. Followed by, In December 2020, It had raised Rs 25 crore in debt financing from Mumbai-based Alteria Capital. So far, the startup has raised over $150 million in funding.
Founded in 2015 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, Bengaluru-based Dunzo provides a wide range of delivery services to its customers such as groceries, food, medicines, pet supplies, etc. It currently operates in Mumbai, Bengaluru, Pune, Hyderabad, Jaipur, Gurugram, New Delhi, and Chennai.
During the COVID-19 lockdown, the startup has witnessed strong growth in user demand and has recorded a two-time GMV (gross merchandise value) growth in 2020 over the previous year. It has also reported that it is now nearly $100 million in annualized GMV business.
Commenting on the latest fundraise, Kabir Biswas, Co-founder & CEO of Dunzo, said, “As a team, we are more focused than ever to enable local merchants to get closer to their users and build one of the most loved consumer brands in the country.”
“As merchants go digital, Dunzo is helping small businesses in their digital transformation journey,” said Caesar Sengupta, vice president at Google. The investment made from Google is part of a $10 billion fund in which the company aims to invest in emerging startups in the country.
Besides Google, investors including Blume Ventures, Kalpavriksh, Greyhound Capital, Patni Wealth Advisors, Stic Investment, 3L Capital, also invested in the startup.
“We are very excited to have been part of Dunzo’s journey from the start and believe they are building a beloved consumer services brand that redefines hyperlocal supply chains and empowers small merchants,” said Vaidhehi Ravindran, Investor, LGT Lightstone Aspada.
The startup reported that it has supported over 300 neighborhoods across 8 cities, and has delivered essential goods to users within 29 minutes.
Earlier in July 2020, e-commerce giant Flipkart had made its entry in hyperlocal delivery sector by launching ‘Flipkart Quick’ in which it aims to deliver orders under 90-mins.
Dunzo currently competes with several other hyperlocal delivery service providers such as Zomato and Swiggy.