Dunzo finds another premium backer after Google, raises funding from former Uber executives

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Updated: June 20, 2019 11:03:49 AM

Dunzo had previously raised capital from Google, former Google India's MD Rajan Anandan, Cognizant’s co-founder and ex-CEO Lakshmi Narayanan, Alteria Capital, Blume Ventures, Patni Wealth Advisors etc.

The new round from Moving Capital is part of Series C round of funding.

Google-backed hyperlocal delivery startup Dunzo has got another premium investor on-board — Moving Capital, an early-stage venture fund based in the US launched by former Uber executives — William Barnes and Josh Mohrer. Dunzo had previously raised capital from Google, former Google India’s MD Rajan Anandan, Cognizant’s co-founder and ex-CEO Lakshmi Narayanan etc. This is Moving Capital’s first investment in the Indian startup ecosystem.

The modest $429,000 raised from Moving Capital is part of Dunzo’s Series C round of funding, according to regulatory filings sourced by business signals platform Paper.vc even as the startup is “looking to raise its Series D round,” Paper.vc founder Vivek Durai told Financial Express Online.

Moving Capital was allotted 565 Series C preference shares, documents showed.

However, as per data platform Crunchbase, the startup had raised around $714,000 from Kalpavriksha in May, $9.7 million in a corporate round from venture debt fund Alteria Capital, Patni Wealth Advisors, Blume Ventures, and Google in April, and $420,000 from unknown investors towards February end this year. The three rounds came after Cognizant’s Lakshmi Narayanan backed the startup with $3.1 million in early February this year only.

The multiple rounds of funding come amid Dunzo’s rapid expansion. Recently the startup extended its delivery service to non-Dunzo retailers or those not that are not partnered with Dunzo to sell goods on its app. “Such retailers would now be able to deliver goods ordered from their websites to customers via Dunzo delivery partners through our new feature — Checkout with Dunzo,” Co-founder and CEO Kabeer Biswas had told Financial Express Online.

These non-Dunzo retailers can now integrate the feature within their websites and customers would be able to choose this option before checking out.

“We are thrilled to back Kabeer and the Dunzo team as they continue rapid growth in one of the world’s fastest growing markets,” Mohrer told Financial Express Online in reply to an email query.

Dunzo so far has more than 5,000 retail stores on its. The startup is the most well-funded company in the on-demand task management space that has other relatively small players including Chennai-based Genie, Hyderabad-based Whizzy etc.

Coming to Moving Capital, the fund is otherwise known as Uber Alumni Investment Club on its AngelList page which suggests that the fund has rebranded itself to a new identity. It has backed 13 startups as per its website.

“Moving Capital is the formal name of the ex-Uber investment club. Not really a re-brand, just the formal name,” added Mohrer.

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