India’s quick and rapid delivery space has just got more interesting with hyperlocal delivery startup Dunzo announcing on Thursday that it has raised $240 Mn in a fresh funding round. Reliance Retail, which owns Jio Mart, has spearheaded the latest funding round. The Mukesh Ambani promoted company has reportedly contributed $200 Mn in the round to pick up 25% stake in the Bengaluru based startup. Existing investors Lightbox, Lightlock, 3L capital and Alteria Capital also participated in the round.
Dunzo counts Google among slew of investors but the tech giant did not participate in the latest round. The company commanded a valuation of nearly $800 Mn in the fresh funding round. This is hyperlocal delivery startup’s largest funding round till date.
The Reliance led round has come months after Dunzo’s funding talks with Tata Group fell through. The negotiations supposedly collapsed as Tata was seeking controlling stake but Dunzo’s CEO & co-founder Kabeer Biswas wasn’t ready to shed his control, sources claim.
The latest capital infusion will certainly help the Bengaluru based startup in building its war chest. This much needed boost will come at a time when the rapid delivery space is attracting frenetic activities over the last few months. Grofers entered the quick delivery space by rebranding to a new name Blinkit and also raised funds from Zomato. Swiggy is equally planning to make steady investment in InstaMart while Zepto raised $100 Mn barely 2 weeks back.
Biswas has made it clear to a leading news portal that his company won’t be pursuing the 10 minute delivery space. Rather his company will be aggressively chasing 19-20 minute delivery space. He claimed that the 10 minute space will put adverse impact on the health of delivery workers and India isn’t quite ready for this niche space.