Reliance Retail has bought 25.8 percent stake in Dunzo. He has bought this stake for $ 200 million (about Rs 1,488 crore).
Reliance Retail has bought 25.8 percent stake in Dunzo.
Reliance Retail has bought 25.8 percent stake in Dunzo. He has bought this stake for $ 200 million (about Rs 1,488 crore). The company plans to increase its presence in the online grocery delivery business. Dunzo has raised $240 million (about Rs 1,787 crore) in a recent funding round, led by Reliance Retail Ventures Limited (RRVL), both companies said in a statement.
Existing investors Lightbox, LightRock, 3L Capital and Alteria Capital also participated in the funding round. With an investment of $200 million, Reliance Retail will have a 25.8 per cent stake, the statement said. Along with the funding, Dunzo and Reliance Retail will also enter into some business agreements. Dunzo will provide hyperlocal logistics for the stores operated by RRVL. This will increase the own capabilities of Reliance Retail.
Will help grow Dunzo’s business
Dunzo will also provide end-to-end delivery facilities for Jio Mart’s vendor network. The money will be used to advance Dunzo’s vision of becoming the largest quick commerce business in the country, the statement said. With this, there will be an instant delivery of essential goods from the network of micro warehouses. With this money, the company’s B to B business vertical will be expanded, which will provide logistics for local vendors in Indian cities.
Isha Ambani, director of RRVL, said that they are seeing a change in the consumption pattern, which is going online, and they are very much impressed by Dunzo’s work in this area. He further added that Dunzo is a leader in quick commerce in India and they want to further their ambitions of becoming the largest local commerce chain in the country. He said that through the tie-up with Dunzo, the company will be able to offer greater convenience to the customers of Reliance Retail and better customer experience through quicker delivery of products from Reliance Retail stores. They said their vendors will have access to Dunzo’s hyper local delivery network to support their growth. They will take their business online through Jiomart.
Dunzo is a major player in the Quick Commerce category, with a huge market opportunity of $50 billion.