Dunzo raises $240M in a round of funding led by Reliance Retail to expand new geographies and quick commerce biz; RIL stock gains 1%

7 Jan 2022 , 11:24 AM

India’s leading quick commerce player, Dunzo has raised $240M in its latest round of funding that was led by Reliance Industries-led Reliance Retail Ventures. Existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in the funding round.

With an investment of $200M, Reliance Retail will own a 25.8% stake on a fully diluted basis. This round is a reinstatement of confidence of existing and new investors in Dunzo’s potential and success in creating an exceptional user experience.

The capital will be used to further Dunzo’s vision to be the largest quick commerce business 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.

Apart from 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.

Isha Ambani, Director, Reliance Retail Ventures Limited, said, “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, ” 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.”

Morgan Stanley acted as exclusive financial advisor and Cyril Amarchand Mangaldas acted as legal counsel to Dunzo. AZB & Partners acted as legal counsel to RRVL and Deloitte, Haskins & Sells LLP provided financial due diligence services.

Dunzo has established itself as the market leader in the quick commerce category in India, which has an addressable market opportunity of US$50+ billion. Currently Dunzo is available across 7 metro cities in India and the additional capital will be used to expand
the quick commerce business to 15 cities.

At around 11.20 am, RIL was trading at Rs2443 per piece up by Rs26.40 or 1.09% on Sensex. The stock was near the day’s high of Rs2457.65 per piece.