SUMMARY
Google along with a new strategic investor may participate in the funding round
Dunzo last raised Series C funding in February
Swiggy recently forayed in hyperlocal space with Swiggy Stores
Bengaluru-based hyperlocal startup Dunzo is looking to close a $15 Mn-$20 Mn funding round as the company sees Naspers-backed foodtech unicorn Swiggy showing interest in its space.
A media report citing people familiar with the matter said that Google along with a new strategic investor may participate in the funding round.
Dunzo was founded in 2015 by Ankur Aggarwal, Dalvir Suri, Mukund Jha, and Kabeer Biswas. It uses artificial intelligence to offer hyperlocal services. The application through its chat-based interface which allows users to create to-do lists and collaborate with others and get their work done.
It leverages AI to provide vendors for shipping of packages, buying products, repairing stuff, and home services. Users can also get their personal tasks done through the app, which may include anything from paying bills, getting car services, repairing things among many more.
The company last raised $ 422K (INR 3 Cr) from MakeMyTrip founder Deep Kalra and $3.1 Mn (INR 22.49 Cr) in its Series C funding round from a group of popular investors.
The company is enabling operations in six cities, including Bengaluru, Hyderabad and Gurugram. During October 2018, it claimed to have crossed 1 Mn transactions.
Meanwhile Swiggy forayed into the on-demand hyperlocal space with the launch of ‘Swiggy Stores’ integrated within the app. The company has launched a pilot project of delivery of groceries across Bengaluru and Gurugram. The report said that even though Dunzo’s everything-delivery is a unique proposition in the industry as of now, the entry of Swiggy in the hyperlocal space of groceries may increase pressure on the company.
Just recently, the company has also reportedly expanded to business-to-business services as it looks to provide logistics services to businesses and increase revenue contribution in this high capital-burn business.
A Dunzo spokesperson reportedly confirmed this development and said, “Dunzo Business is one of the fastest growing parts of our business. Dunzo is enabling businesses of all sizes to come online without having to develop and manage their own logistics.”
According to a report by market research firm, Ken Research, the Indian hyperlocal market will grow at a considerable CAGR rate thus exceeding INR 2,306 Cr by 2020.
Dunzo was part of the 2018 edition of the most coveted list of India’s most innovative startups — 42Next by Inc42.
