Exclusive: Dunzo set to close $55 million in new funding

The hyperlocal delivery startup's new round will take the company's value to over $250 million, say sources

Published: May 28, 2020 12:39:12 PM IST
Updated: May 28, 2020 02:44:42 PM IST

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The fresh funding for Dunzo comes at a time when hyperlocal delivery players have shot into prominence again, in the extended nationwide lockdown due to Covid-19. Image: Shutterstock

Hyperlocal delivery startup Dunzo is about to raise a $55 million to $70 million round from a clutch of existing and new investors over the next few days. The new round values the five-year old firm at over $250 million, according to sources requesting anonymity. While Dunzo’s existing investors could not be reached out for comment, Dunzo confirmed that it has witnessed keen interest from investors.

“We've definitely witnessed a growing interest from the global investor community,” a spokesperson said in an email response, adding that the company would comment on investment opportunities at the right time.

The fresh funding comes at a time when hyperlocal delivery players have shot into prominence again, due to the extended nationwide lockdown due to Covid-19. In fact, players from different shades of businesses are hopping into the hyperlocal gravy train to survive the tough time. Take, for instance, online food delivery players Zomato and Swiggy, or Domino’s, all of which have started delivering groceries. 

The Bengaluru-based player, which counts Lightbox Ventures and Google among its backers, reportedly raised $45 million last October from a slew of investors, including 3L Capital and STIC Investment & STIC Ventures.

Founded by Kabeer Biswas, Mukund Jha, Dalvir Suri and Ankur Aggarwal in January 2015, and operational across top eight cities including Delhi, Mumbai and Pune, Dunzo happens to be the first home-grown startup in which internet giant Google made its maiden direct investment in December 2017. For the March-ended fiscal 2019, Dunzo reportedly posted an operational revenue of Rs 76.59 lakh and losses of Rs 168.9 crore.  

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