Hyperlocal delivery app Dunzo has raised $28 million in its Series E funding round led by Google and Lightstone Fund. According to a report,Google and Lightstone have invested $15.65 million in the ongoing Series E funding round.
Lightbox, Moving Capital, 3L Capital, Bhoruka Finance Corporation and Pivot Ventures will collectively pump in the remaining $12.34 million. Google is an existing investor in Dunzo and it was its first direct investment into an Indian startup in 2017.
Dunzo was founded by Kabeer Biswas, Mukund Jha, Dalvir Suri and Ankur Aggarwal in 2015. The Bengaluru-based app provides delivery services in Bengaluru, Delhi, Gurugram, Pune, Chennai, Jaipur, Mumbai and Hyderabad. It is a strong player in the hyperlocal delivery space.
It partners with small local businesses and provide them with services. In the past few months businesses on Dunzo have experienced 4X increase in average order volume. Grocery stores have also seen an increase of 150% in their revenues.
The lockdown had provided Dunzo a great opportuinty in the delivery sector. The pandemic has also forced many people to order most essentials online, provideing this sector a great opportunity. India’s hyperlocal market has the potential to exceed Rs. 2,306 crores by 2020, according to a pre-COVID estimate by Ken Research. The Covid-19 pandemic has made this sector even stronger.
As a result, the hyperlocal delivery sector is seeing a growing competition in India. Swiggy recently launched its service ‘Genie’, which provides orders from nearby stores for essential items. Also, Flipkart started its hyperlocal delivery service ‘Flipkart Quick’ to deliver essentials to the consumers.