Dunzo to add 300 micro-fulfilment centres to deliver grocery in under 19 minutes

Google-backed Dunzo plans to add over 300 micro-fulfilment centres across 700 neighbourhoods with a focus on express grocery delivery, the logistics service provider said on August 26.

The company recently launched Dunzo Daily to tap into the rapidly expanding on-demand grocery delivery market. The firm promises to deliver essentials in under 19 minutes.

Expanding and deepening its Dunzo Daily offering with the top 2,000 SKUs, Dunzo will scale its services to the top 20 cities in India over the next 18 months.

The company has scaled up its gross merchandise value 1.6 times during the financial year 2021 as compared to the previous year, it said.

The company also claims to have improved its unit economics. "It has reduced its expenses per rupee of operating revenue earned from Rs13 in FY20 to Rs 6 in FY21," the company said in a statement.

Dunzo Daily competes with Swiggy's Instamart, Zomato-backed Grofers and Tata’s BigBasket, which are doubling down in the quick commerce category.

Grofers plans to reduce the delivery time for groceries from 15 to 10 minutes as it expands its services to 10 cities in India. Food-delivery platform Swiggy has expanded Instamart to five more cities, promising to deliver essentials in 15-30 minutes.

A recent survey by Reedseer found that quick commerce is expected to grow 10-15-fold in the next five years to become a $5-billion opportunity by 2025.