Reliance Retail picked up a 25.8 percent stake in on-demand delivery startup Dunzo, further expanding on its acquisition flurry and signaling its entry into the rapid delivery market.
Dunzo is now valued at about $800 million.
The company was founded by Kabeer Biswas in 2016, and the Reliance investment trumps all the investment the company has had over the last five years.
With the infusion of new capital, Dunzo can now compete with the likes of Big Basket in the rapid delivery of groceries to urban households.
‘Since our inception, we have been razor-focused on providing an unmatched customer experience and this funding round is a validation of our approach. I am proud of the team for tirelessly building the category over the last three years,’ Biswas said in a statement.
‘With the 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 and weekly essentials’ the Dunzo founder added.
Dunzo offers 19-minute delivery, as opposed to the 10-minutes proffered by the competition, keeping delivery worker health in mind and the nascent stage of the market.
‘We are seeing a shift in consumer patterns to online and have been highly impressed with how Dunzo has disrupted the space.
Dunzo is the pioneer of quick commerce in India,’ said Isha Ambani, Director, Reliance Retail Ventures Limited.
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