Reliance Retail Ventures Limited (RRVL), the retail subsidiary of Reliance Industries, has purchased a 25.8% stake in quick commerce player Dunzo for $200 million. Dunzo has managed to raise a total of $240 million from this round of funding which saw participation of existing customers such as Lightbox, Lightrock, 3L Capital and Alteria Capital.
Dunzo is a Bengaluru based startup and a leading player in the quick commerce category. Where traditional e-commerce takes more time in delivery, quick commerce (or q-commerce) enables customers to get smaller quantities of goods faster. Earlier in 2021, it launched its Dunzo Daily model which has seen a 20% week-on-week growth. Its daily model delivers goods in 15-20 minutes, its primary focus being high quality fruits and vegetables.
Isha Ambani, Director, Reliance Retail Ventures Limited, said, “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, “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.”
Dunzo currently operates in 7 cities and the funding will be used to expand to 15 cities. 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. Along with the funding, Dunzo will also enable hyperlocal logistics for RRVL’s retail stores, facilitate last mile deliveries for the JioMart’s merchant network and further add onto Reliance Retail’s omni-channel abilities.