Dunzo is an e-commerce and delivery platform which deals with creating a hyperlocal network of merchants of local shops, outlets and restaurants along with the users while delivering items at their doorsteps.
E-commerce firm Dunzo has attracted a huge investment once again from multiple international investors. The Google-backed firm has got $40 million investment from various new investors – Google, Lightbox, Hana Financial Investment, Evolvence, LGT Lightstone Aspada, and Alteria. The focus of the company has been to advance its execution policy so far; regarding the expansion of local services.
Last year, Dunzo did raise $28 million in its funding round with companies like Google and LGT Lightstone Aspada. With its successful second funding drive, the investors seem to be quite keen on funding more dollars for the e-commerce firm. This has further boosted its targets and goals for 2021 as the pandemic driven year led to a surge in e-commerce demands from people belonging to different walks of life.
What is Dunzo?
Dunzo was launched in 2014 when it started as a mere WhatsApp group with a simple aim of connecting people in a particular locality with grocery shops and restaurants. Thereafter, the firm has grown manifold in its reach and approach where it now lets people buy their groceries, perishables, and other essential items while getting them delivered at their doorsteps from neighbourhood shops and restaurants.
Along with daily use items, the company deals with medicines and pet supplies as well. With its growing footprint, Dunzo is now successfully operating in a lot of cities including – Delhi, Noida, Gurugram, Pune, Hyderabad, Mumbai, Chennai, and Bangalore. The company has also set a record of delivering goods to the customers within 29 minutes from different shops.
The way ahead
Dunzo has reported double growth in its Gross Merchandise Value (GMV) which has now grown to be a $100 million GMV business. The company has further affirmed that they have been amazed by the response of both the merchants and that of the users. Moreover, they have said that they have created a new playbook further defining the scope of hyperlocal businesses that can be easily built with sustainable unit economics and capital responsibility. Now the team has expressed its plans about making their services more robust in the cities where Dunzo is witnessing a rise in utilisation of its services – Mumbai, Pune, and Chennai.
The e-commerce firm is also helping small and medium businesses to transform themselves digitally. Besides that, Google has also committed $10 billion funding to the most innovative startups in the country through its India Digitisation Fund. This has proved to be a crucial boost for such startups like Dunzo to expand their services and to strengthen their infrastructure.
Binding the local grocery shops and outlets into a wide network of merchants and users – Dunzo has significantly substantiated the sales of myriad products. As e-commerce is still quite low in the country with a mere three percent presence while the hyperlocal sales and transaction is done through local outlets, ration shops, confectionaries, and food joints.
With this innovative approach towards a hyperlocal delivery system – Dunzo is seemingly posing a substantial challenge to e-commerce giants such as Amazon and Flipkart in addition to local food delivery platforms Swiggy and Zomato.