Mukesh Ambani’s Reliance Retail has invested $200 million, or around Rs 1,488 crore in Bengaluru-based quick commerce player Dunzo for a 25.8 per cent stake on a fully diluted basis. The move will help Reliance get a foothold in the country’s growing quick delivery market.
Dunzo raised a total of $240 million in this latest round led by Reliance Industries Ltd arm. The other existing investors were Lightbox, Ligthrock, 3L Capital and Alteria Capital, who participated in the round.
The funding will be used to strengthen Dunzo’s vision to excel in the quick commerce business, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities, RIL said in a statement.
In addition to this investment, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will enable hyperlocal logistics for the retail stores operated by Reliance Retail, further adding onto Reliance Retail’s omni-channel capabilities. Dunzo will also facilitate last mile deliveries for JioMart’s merchant network.
Isha Ambani, Director, Reliance Retail Ventures Limited, said, “We are seeing a shift in consumption patterns to online and have been highly impressed with how Dunzo has disrupted the space. Through our partnership with Dunzo, we will be able to provide increased convenience to Reliance Retail’s consumers and differentiated customer experience through rapid delivery of products from Reliance Retail stores. Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through Jio Mart.”
Morgan Stanley acted as exclusive financial advisor and Cyril Amarchand Mangaldas acted as legal counsel to Dunzo. AZB & Partners acted as legal counsel to RRVL and Deloitte, Haskins & Sells LLP provided financial due diligence services.