Dunzo Raises $40 Million from Google, Lightbox & Others

Online delivery start-up Dunzo on Tuesday said it has raised a fresh $40 million from new and existing investors. The investment, part of the company’s ongoing Series E financial round, saw participation from Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada and Alteria, among others.

The fresh capital will be used to expand in Mumbai, Chennai and Pune, its fastest growing markets, the firm said.

In October 2019, a clutch of investors had infused about $45 million in Dunzo. So far, the company has raised nearly $135 million in funding.

The Bengaluru-based firm that delivers a range of items to its customers starting from groceries, perishables to pet supplies and packages across eight cities gained more users amid the pandemic as home-bound consumers moved online for servicing regular needs. The company claims to have recorded a two-time GMV growth in 2020 over the previous year and said it is now a nearly $100 million annualised GMV business. “The growth in 2020 comes on the back of strong, organic user demand while maintaining gross margin profitability for the overall business,” the firm said.

In the last six months, Dunzo supported over 300 neighbourhoods across markets, delivering essentials to users within 29 minutes on average.

“Through our India Digitisation Fund, we are committed to partnering with India’s innovative startups to build a truly inclusive digital economy that will benefit everyone,” said Caesar Sengupta, V-P, Google.

January 20, 2021