Reliance Retail Ventures Limited (RRVL) a subsidiary unit of Reliance Industries Limited has made an investment of $200 Million in the quick commerce startup, Dunzo. With this investment the company will own 25.8% stake in Dunzo on a fully diluted basis, an official statement highlighted.
Dunzo has raised a funding of total $240 million from Reliance Retail and also saw participation from the existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital.
The company also announced that the capital will be used to further the growth of the quick commerce segment in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities.
Isha Ambani, Director, Reliance Retail Ventures Limited spoke about the investment “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 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 Jio Mart.”
Kabeer Biswas, CEO and Co-Founder, Dunzo, said, “Since our inception, we have been razor focused on providing an unmatched customer experience and this funding round is a resounding validation of our approach. I am proud of the team for tirelessly building this category over the past three years and grateful to our investors for their continued support. 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 & weekly essentials. We’re excited by the traction and velocity that Dunzo Daily has achieved and over the next 3 years, we aim to establish ourselves as one of the most reliable quick commerce providers in the country.”
In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will enable hyperlocal logistics for the retail stores operated by Reliance Retail, further adding onto Reliance Retail’s omni-channel capabilities. Dunzo will also facilitate last mile deliveries for JioMart’s merchant network.
Currently Dunzo is available across 7 metro cities in India and with this additional capital it will expand the quick commerce business to 15 cities.