Reliance Retail invests $200 million in Dunzo

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Reliance Retail Ventures Limited has invested $200 million in Dunzo, India’s leading quick commerce player, to own 25.8% stake in the latter company.

Dunzo has raised a total of $240 million in its latest round of funding. The investment was led by Reliance Retail Ventures, with participation from existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital.

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.

“We are seeing a shift in consumption patterns to online and have been highly impressed with how Dunzo has disrupted the space,” said Isha Ambani, Director, Reliance Retail Ventures.

“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.”

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.

Dunzo launched its instant delivery model ‘Dunzo Daily’ in Bengaluru earlier this year, which is seeing over 20% 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.

“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,” said Kabeer Biswas, CEO and Co-Founder, Dunzo.

Dunzo will also facilitate last mile deliveries for JioMart’s merchant network.

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.