Dunzo To Raise $250-300 Million To Boost Its Expansion Plans

Dunzo, a hyperlocal delivery startup, is looking to raise $250-300 million to boost its expansion plans.

First reported by Inc 42, the quick commerce startup is likely to work with Morgan Stanley for the funding round, the process for which may begin in April. Dunzo will dilute a 10-15% stake during the next fundraising round.

Dunzo | 24X7 Delivery App

Started by Kabeer Biswas, Ankur Agarwal, Dalvir Suri and Mukund Jha, Dunzo is an all-in-one 24X7 hyperlocal delivery platform. Ranked on LinkedIn’s top startups, the startup picks and delivers anything and everything within the city while guaranteeing super-quick deliveries.

Its services include the delivery of packages, groceries, food, medicines, pet supplies, and more.

As per Kabeer Biswas, Dunzo chose not to divulge any valuation figures ahead of its previous funding round. In the previous round, the startup didn’t optimise for valuation and optimised for the right partner, added Biswas.

However, during the last funding round, there were offers on the table valuing Dunzo at more than $1.2 Billion, Biswas claimed, but the startup went with Reliance Retail as its backer.

Coming back to the development, Dunzo will most likely join the coveted unicorn club with the upcoming funding round. As per estimates, the startup will be valued at $2-3 Billion in the next funding round.

In January this year, Dunzo had raised $240 Millon in an investment round led by Reliance Retail Ventures Limited, picking up a 25.8% stake on a fully diluted basis for $200 Million.

According to a report by RedSeer, the q-commerce market in India is expected to reach $5 Billion by 2025, which is currently at $0.3 Billion. Another report by IBEF highlighted that the last-mile delivery or the hyperlocal market in India is expected to reach $6 Bn – $7 Bn by 2024.

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