An Indian startup that is increasingly posing a threat to established food and
grocery delivery businesses and e-commerce giants just closed a new financing
round to expand its business in the nation.

Bangalore-basedDunzo [https://www.dunzo.com/]said today it has raised $45
million from Google, Lightbox Ventures, STIC Investment and STIC Ventures, and
3L Capital in a new financing round. The round, dubbed Series D, valued the
startup at about $200 million, three people familiar with the matter told
TechCrunch. The startup has raised $81 million to date.

Dunzo, [https://crunchbase.com/organization/dunzo]a four-year-old startup,
operates an eponymous hyper-local delivery service. Users get access to a
wide-range of items across several categories, from grocery, perishables, pet
supplies and medicines to dinner from their neighborhood stores and restaurants.

But that?s not all. You can have Dunzo pick up and deliver anything within a
city. Forgot your laptop charger at home? Dunzo will bring it to your office.
Part of the service?s charm is that its delivery is fast (most of its deliveries
take less than 25 minutes), and as long as the store is not very far away, it?s
not going to cost you more than a $1.

Dunzo is currently operational in eight Indian cities: Bangalore, Delhi, Noida,
Pune, Gurgaon, Powai, Hyderabad and Chennai. The startup said it will use the
fresh capital to expand its technology infrastructure and develop partnerships
with small and medium businesses to ?give them a fighting chance? to compete
with major giants.

E-commerce accounts for less than 3% of all retail sales in India, according to
industry estimates. Mom and pop stores and other neighborhood outlets that dot
tens of thousands of cities, towns, villages and slums across the country drive
most of the sales in the nation. Dunzo joins agrowing number of startups
[https://techcrunch.com/2019/10/02/udaan-series-d/]in India that are attempting
to help small and micro merchants embrace technology for the first time to grow
their businesses.

?We are on course to building the largest commerce platform in the country with
the most efficient logistics solution for each city,? said Kabeer Biswas,
co-founder and CEO of Dunzo, said.

As the service scales, it is increasingly becoming a competitor to food and
grocery delivery startups such asBigBasket,
[https://crunchbase.com/organization/bigbasket-com]Swiggy
[https://crunchbase.com/organization/swiggy]and Zomato. Dunzo founders told
TechCrunch that food category already accounts for a quarter of all deliveries
it processes.

In recent months, Dunzo has also started to test delivery of smartphones and
other products. It recently tied up withXiaomi
[https://crunchbase.com/organization/xiaomi]to deliver smartphones to users in
select parts of India. Unlike Amazon orFlipkart
[https://crunchbase.com/organization/flipkart]that take a day or two to deliver
a phone, Dunzo was getting the new phones to users in 30 minutes. Dunzo has
tested a similar partnership with Puma, executives told TechCrunch.

Jayanth Kolla, founder and analyst at research firm Convergence Catalyst, told
TechCrunch that by getting a new phone to users in half an hour, Dunzo is able
to ?offer the instant gratification? ? something that plays a crucial role in a
person?s purchasing decision ? that e-commerce platforms in India can?t match
today.

But Dunzo remains tiny in comparison to the giants whose businesses it is
beginning to disrupt. Today, the startup processes about 2 million orders a
month, up from about 50,000 early last year. Swiggy and Zomato, in comparison,
process more than 3 million orders a day, for instance. And they are also
heavily backed.

In an interesting turn of events, last monthSwiggy announced Go
[https://techcrunch.com/2019/09/04/swiggy-delivery-anything-dunzo/], a service
that allows users in select cities in India to deliver any kind of item ? not
just food ? within their own city, thereby entering Dunzo?s territory. While
Swiggy moves beyond food delivery, Zomato is increasingly trying to assume more
control over the ins and outs of the food business.

An Indian startup that is increasingly posing a threat to established food and
grocery delivery businesses and e-commerce giants just closed a new financing
round to expand its business in the nation.

Bangalore-basedDunzo [https://www.dunzo.com/]said today it has raised $45
million from Google, Lightbox Ventures, STIC Investment and STIC Ventures, and
3L Capital in a new financing round. The round, dubbed Series D, valued the
startup at about $200 million, three people familiar with the matter told
TechCrunch. The startup has raised $81 million to date.

Dunzo, [https://crunchbase.com/organization/dunzo]a four-year-old startup,
operates an eponymous hyper-local delivery service. Users get access to a
wide-range of items across several categories, from grocery, perishables, pet
supplies and medicines to dinner from their neighborhood stores and restaurants.

But that?s not all. You can have Dunzo pick up and deliver anything within a
city. Forgot your laptop charger at home? Dunzo will bring it to your office.
Part of the service?s charm is that its delivery is fast (most of its deliveries
take less than 25 minutes), and as long as the store is not very far away, it?s
not going to cost you more than a $1.

Dunzo is currently operational in eight Indian cities: Bangalore, Delhi, Noida,
Pune, Gurgaon, Powai, Hyderabad and Chennai. The startup said it will use the
fresh capital to expand its technology infrastructure and develop partnerships
with small and medium businesses to ?give them a fighting chance? to compete
with major giants.

E-commerce accounts for less than 3% of all retail sales in India, according to
industry estimates. Mom and pop stores and other neighborhood outlets that dot
tens of thousands of cities, towns, villages and slums across the country drive
most of the sales in the nation. Dunzo joins agrowing number of startups
[https://techcrunch.com/2019/10/02/udaan-series-d/]in India that are attempting
to help small and micro merchants embrace technology for the first time to grow
their businesses.

?We are on course to building the largest commerce platform in the country with
the most efficient logistics solution for each city,? said Kabeer Biswas,
co-founder and CEO of Dunzo, said.

As the service scales, it is increasingly becoming a competitor to food and
grocery delivery startups such asBigBasket,
[https://crunchbase.com/organization/bigbasket-com]Swiggy
[https://crunchbase.com/organization/swiggy]and Zomato. Dunzo founders told
TechCrunch that food category already accounts for a quarter of all deliveries
it processes.

In recent months, Dunzo has also started to test delivery of smartphones and
other products. It recently tied up withXiaomi
[https://crunchbase.com/organization/xiaomi]to deliver smartphones to users in
select parts of India. Unlike Amazon orFlipkart
[https://crunchbase.com/organization/flipkart]that take a day or two to deliver
a phone, Dunzo was getting the new phones to users in 30 minutes. Dunzo has
tested a similar partnership with Puma, executives told TechCrunch.

Jayanth Kolla, founder and analyst at research firm Convergence Catalyst, told
TechCrunch that by getting a new phone to users in half an hour, Dunzo is able
to ?offer the instant gratification? ? something that plays a crucial role in a
person?s purchasing decision ? that e-commerce platforms in India can?t match
today.

But Dunzo remains tiny in comparison to the giants whose businesses it is
beginning to disrupt. Today, the startup processes about 2 million orders a
month, up from about 50,000 early last year. Swiggy and Zomato, in comparison,
process more than 3 million orders a day, for instance. And they are also
heavily backed.

In an interesting turn of events, last monthSwiggy announced Go
[https://techcrunch.com/2019/09/04/swiggy-delivery-anything-dunzo/], a service
that allows users in select cities in India to deliver any kind of item ? not
just food ? within their own city, thereby entering Dunzo?s territory. While
Swiggy moves beyond food delivery, Zomato is increasingly trying to assume more
control over the ins and outs of the food business.

The 11-year-old firm is working on something it internally calls Project Kisan
to procure supplies directly from farmers and fishermen. The company has already
set up warehouses to store these supplies in many parts of the country,
including South Delhi and Pune.

Original Article:

Google-backed Dunzo raises $45M to expand its hyperlocal delivery startup in India