Bengaluru, NFAPost: Hyperlocal logistics startup Dunzo has managed to raise $28 million in a new funding round led by Google and Lightstone.
The fresh funding has come after a $45 million Series D round in October 2019 and it is the first tranche of the company’s ongoing Series E round.
While Google LLC and Lightstone have already infused $15.65 million, the remaining amount would come from five existing investors, regulatory filings show.
Founded in 2015 by Kabeer Biswas, Ankur Aggarwal, Mukund Jha and Dalvir Suri, Dunzo is an online platform that allow users to buy products from nearby shops and get them delivered to their doorstep.
Dunzo spokesperson said the company’s mission is to make our cities more accessible, and to do so, Dunzo has to empower local businesses with the necessary e-commerce capabilities to master the changing marketplace.
User experience
“We have constantly wanted to steer the narrative and conversation in the ecosystem to a better product, user experience, and what makes a dent in the business. It is our humble contribution towards creating a thriving ecosystem for India that impacts users, merchants, and delivery partners. In light of this, we will not be able to comment further on this round,” said a Dunzo spokesperson.
The fresh capital infusion will help Dunzo to keep in the race of high capital burn segment with competitors like Swiggy, Zomato, BigBasket and Shadowfax among others.
Dunzo has allotted 10,310 Series E CCPS to Google LLC and Lightstone at Rs 1, 13,811.63 per share and has received Rs 117.5 crore or $15.66 million, reveals filings.
Lightbox, 3 L Capital, Moving Capital, Pivot Ventures and Bhoruka Finance Corporation will collectively pump in $12.34 million in coming weeks. Formed in partnership with Aspada and LGT, LGT Lightstone Aspada is India focused impact investment platform of LGT Lightstone.
Operating revenue
Unlike FY19, Bengaluru-headquartered Dunzo’s unit economics improved drastically in the last fiscal as the company’s operating revenue grew 4.25X to Rs 71.56 crore from Rs 16.83 crore in FY19. Importantly, these numbers are based on projections submitted by Dunzo for FY20 as part of their regulatory filings and actual figures will be revealed later this year.
Its annualised total expenditure during the fiscal ending March 2020 amounted to Rs 407.6 crore, ballooning 2.3X from Rs 178.3 crore in FY19.
Of late, Dunzo has also been investing in its B2B business where it enables logistics for hyperlocal retailers. It’s also experimenting with dark stores to help local retailers fulfil customer orders quickly. At present, it runs 10 such stores in Bengaluru, Chennai, and Pune.
