Reliance Retail said on January 6 that it has led a $240 million in on-demand delivery startup Dunzo, giving India’s largest conglomerate access to rapid delivery- one of India’s hottest startup themes attracting a bevy of investors.
Reliance has acquired a 25.8 percent stake in Bengaluru-based Dunzo, valuing the company at about $800 million. Founded by Kabeer Biswas in 2016, the $240 million shot in the arm is more than what Dunzo has raised all these years- about $140 million.
The deal gives Dunzo ammunition to compete against Blinkit (earlier Grofers), new upstart Zepto, Swiggy-owned Instamart, and BigBasket, among others, and deliver groceries and essential items to urban households quickly.
Dunzo’s other investors include Blume Ventures, Google, and Lightbox Ventures. Lightbox, Lightrock, 3L Capital and venture debt firm Alteria also invested.