Having secured $28 million in funding last September, Dunzo, a hyperlocal delivery startup, has raised $12 million, led by a clutch of investors including Google LLC, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada, and Alteria. With this, the Bengaluru-based startup has completed its $40 million Series E round, which will help it execute its 2021 strategy, the company said in a statement.
Dunzo said it witnessed a year of strong, organic growth amid the pandemic. Going ahead, the local commerce platform will focus on growth across its fastest-growing cities such as Mumbai, Chennai, and Pune. It is now approximately a $100 million business in annualized gross merchandise value (GMV), a two-fold increase year-on-year.
“As a team, we are more focused than ever to enable local merchants to get closer to their users and build one of the most loved consumer brands in the country,” said Kabeer Biswas, chief executive, and co-founder, Dunzo Digital Pvt. Ltd.
Over the last six months, Dunzo claims to have supported over 300 neighborhoods across eight cities, delivering essential goods to users within 29 minutes on average. As cities reopen, it continues to see strong growth across user segments.
“As merchants go digital, Dunzo is helping small businesses in their digital transformation journey in support of business recovery,” said Caesar Sengupta, vice-president, Google. “Through our India Digitization Fund, we’re committed to partnering with India’s innovative startups to build a truly inclusive digital economy that will benefit everyone.”
The funding comes at a time when the hyper-local category is heating up, with the recent entry of Flipkart and increased attention from existing players like Amazon and Swiggy, as more consumers prefer doorstep deliveries due to the pandemic.
“We are very excited to have been part of Dunzo’s journey from the start and believe they are building a beloved consumer services brand that redefines hyperlocal supply chains and empowers small merchants, partners, and consumers alike,” said Vaidhehi Ravindran, principal, LGT Lightstone Aspada.