The logistics startup Dunzo raised $240 million from Reliance RetailRetail Ventures Limited Reliance Retail at a time when the Mukesh Ambani-led conglomerate is building its e-commerce capabilities to take on the likes of Amazon and Flipkart. The investment was led by Reliance RetailRetail Ventures Limited Reliance Retail with participation from Lightbox, Lightrock, 3 L Capital and Alteria Capital. Reliance Retail will own a 25.8 per cent stake on a fully diluted basis, with an investment of $200 million.
According to an exchange filing by Reliance Industries Limited, the capital will be used to further Dunzo's vision to be the largest quick commerce business in the country, enabling the delivery of essentials from a network of micro warehouses, and expanding its B 2 B business vertical to enable logistics for local merchants in Indian cities.
Dunzo has established itself as the leader in the quick commerce category in India, which has an addressable market opportunity of US $50 billion. Dunzo is currently available in 7 metro cities in India and the additional capital will be used to expand the quick commerce business to 15 cities. The instant delivery model Dunzo Daily was introduced in Bengaluru earlier this year, and is seeing over 20 per cent week on week growth. The Dunzo Daily model delivers daily and weekly essentials within 15 -- 20 minutes, with a focus on providing high quality fruits and vegetables, as per an official handout.
Besides the young startup, Zepto, which has already crossed half a billion-dollar valuation, Zomato-backed Blinkit formerly Grofers is one of the leading players in the vertical.
In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will allow hyperlocal logistics for retail stores operated by Reliance Retail, further adding to Reliance Retail's omni-channel capabilities. According to an official statement, Dunzo will also be responsible for last mile deliveries for JioMart's merchant network.
We are seeing a shift in consumption patterns to online and have been 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 to become a prominent local commerce enabler in the country. We will be able to provide more convenience to Reliance Retail consumers and differentiated customer experience through the delivery of products from Reliance Retail stores through our partnership with Dunzo. Our merchants will have access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through Jio Mart, said Isha Ambani, Director, Reliance RetailRetail Ventures Limited.
Kabeer Biswas Kabeer Biswas, CEO and Co-Founder, Dunzo, said that his company has been focused on providing an unmatched customer experience, and this funding round is a resounding validation of the firm's approach.
I am proud of the team for the tireless work over the past three years and grateful to our investors for their continued support. With 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 essentials. Biswas said that they were excited by the traction and velocity that Dunzo Daily has achieved and over the next 3 years they aim to establish themselves as one of the most reliable quick commerce providers in the country.