Dunzo, a hyperlocal startup headquartered in Bengaluru, has secured fresh funding of $11 Mn from existing investor and venture debt specialist Altera Capital.
The company hinted that it will utilize the debt capital to sustain and fuel growth in profit-orientated markets.
Vinod Murali, Managing Director Altera Capital, said that customers growing affiliation towards Dunzo is clearly reflected through its sustained growth and high number of repeat users.
He further added that Dunzo has what it takes to be a market leader in a highly competitive space.
Dunzo had last raised $45 Mn from Light Box, Google and other investors in October 2019.
What makes Dunzo different from other delivery platforms
Unlike food delivery platforms Swiggy and Zomato, Dunzo is a hyper-local specialist and therefore it delivers a wide range of products at customer doorsteps.
This includes food, daily grocery, fruits & vegetables, medicines, meat & fish, gifts and other products. It also offers bike ride rental services.
Therefore apart from Swiggy, Zomato and Big Basket, it also competes with bike taxi companies like Vogo and Bounce.
With growing competition in delivery space, especially food delivery space, Dunzo will need to raise funds at regular intervals in order to build a scalable business in profitable markets.
But simultaneously, the company will have to maintain a tight grip over its balance sheet to keep narrowing down its losses.
