On its own, Reliance Retail has invested $200 million for a
25.8% stake in the Bengaluru venture. Existing investors Lightbox, Lightrock,
3L Capital, and Alteria Capital also participated in the round.
Dunzo will use the funds to strengthen its position in the
quick commerce (Q-comm) business, enabling instant delivery of essentials from
a network of micro warehouses, and to expand its B2B business vertical that
provides logistics for local merchants in Indian cities. Under the partnership
with Reliance Retail, Dunzo will provide hyperlocal logistics for the retail
stores operated by Reliance, and facilitate last-mile deliveries for JioMart's
merchant network.
Reliance Retail Ventures director Isha Ambani said, "We
are seeing a shift in consumption patterns to 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.
Through our partnership with Dunzo, we will be able to
provide increased convenience to Reliance Retail's consumers and differentiated
customer experience through the 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
JioMart."
Quick commerce is said to have an addressable market
opportunity of over $50 billion. Currently, Dunzo is available across seven
metro cities in India and the additional capital will be used to expand the
quick commerce business to 15 cities.
Dunzo launched its instant delivery model 'Dunzo Daily' in
Bengaluru earlier this year, which is said to be seeing over 20% week-on-week
growth. Dunzo Daily delivers essentials within 15-20 minutes.
Dunzo CEO and co-founder Kabeer Biswas said, "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 and weekly
essentials."
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