Concierge app Dunzo has picked up USD 45 million in Series D led by Lightbox. South Korea’s STIC Ventures, US-based 3L Capital and Google have participated in the funding round. The Bengaluru-based company is likely to get another USD 10 million to close out the round, said a Times of India report.
Dunzo’s valuation has shot up to USD 180-200 million in the light of fresh funding.
Dunzo co-founder and CEO Kabeer Biswas told Times of India the company will invest the new capital in its technology platform and scale up its commerce business where it ties up with mid- to large-sized merchants to deliver a range of products like grocery, staples, food and medicine.
“Commerce business is about 50% of our total volumes now and it could be bigger next year. We have seen it (commerce) leading to more unplanned purchases on the platform,” Biswas said.
The tasks management app provides delivery services in Bengaluru, Delhi, Gurgaon, Pune, Chennai and Hyderabad and also operates a bike taxi service in Gurgaon. Ankur Aggarwal, Dalvir Suri, Kabeer Biswas, and Mukund Jha founded Dunzo in 2015.
The Bangalore-based company has been facing tough competition from Swiggy’s newly launched concierge service, Swiggy Go in the hyper-local (including grocery, medicine and food) and parcel delivery segment. Dunzo’s other major rivals include AmazonFresh and Rapido and OlaBike in bike taxi space.
The company launched ‘Checkout with Dunzo’ in May to tap the B2B logistics opportunity. Dunzo has also been putting a lot of effort to make the business viable at the unit economics level. The company has claimed to have brought down losses per delivery from Rs 142 to Rs 30.
The monthly orders have also gone up from 40,000-50,000 in last January to 20 lakh orders a month.