Reliance-backed Dunzo nears new $50 million funding
Indian hyperlocal delivery startup Dunzo is in late-night talks to secure about $50 million in a new round of funding, two sources familiar with the matter told TechCrunch, while the Bengaluru-headquartered startup is going through an otherwise younger funding winter company struggling for consolation.
Reliance Retail and Google, two existing Dunzo backers, are among those in talks to invest in the new round, the sources said, asking not to be identified as the information is private. Funding considerations are currently being advanced largely with existing donors, the sources said.
The startup has been in the market for several months to raise capital and wanted to raise at least $70 million and up to $150 million, according to Indian newspaper Economic Times.
Kabeer Biswas, Dunzo’s co-founder and chief executive officer, declined to comment Thursday. Google and Reliance Retail did not immediately respond to a request for comment.
Dunzo competes with Swiggy’s Instamart, YC Continuity-backed Zepto, Tata-owned BigBasket and Zomato’s BlinkIt, all seeking to woo a slice of India’s retail market that brokers estimate will grow to over $800 billion by 2025 Bernstein company.
Delivery startups, which tend to be among the most cash-guzzling businesses, find it unsurprising that raising new funding rounds is particularly difficult in a sluggish global economy.
Karthik Gurumurthy, the head of Swiggy’s Instamart business, said Friday that he is quitting the role. Building Instamart was “arduous with many tradeoffs in physical and mental well-being,” he wrote in a LinkedIn post.
It’s a dynamic that’s happening globally. Europe’s rapid delivery market has consolidated to three companies. Instacart has lowered its internal valuation to $10 billion from $39 billion in March 2021.
The story has been updated with more details on Instamart.
Continue reading: Reliance JioMart closes its express delivery service (Economic Times)
https://techcrunch.com/2023/03/30/reliance-backed-dunzo-nears-fresh-funding-of-50-million/ Reliance-backed Dunzo nears new $50 million funding