Reliance Retail bought a 25.8 percent stake in Dunzo, India’s leading fast delivery player, for $200 million (approximately Rs. 1,490 crore) as it seeks to expand its presence in the online grocery delivery business.
Dunzo raised $240 million (approximately Rs. 1,790 crore) in its latest round of financing led by Reliance Retail Ventures – the retail arm of Reliance Industries, the two companies said in a press release.
Existing investors Lightbox, Ligthrock, 3L Capital and Alteria Capital also participated in the financing round.
“With an investment of US$200 million (approximately Rs. 1,490 crore), Reliance Retail will have a 25.8% share,” the statement said.
“We are seeing a shift in consumption patterns to online and we are very impressed with how Dunzo has disrupted the space.” Reliance’s retail director, Isha Ambani, said. “Through our partnership with Dunzo, we will be able to offer Reliance Retail consumers greater convenience and a differentiated customer experience through fast product delivery from Reliance Retail stores. Our merchants will have access to Dunzo’s hyperlocal delivery network to support their growth as they move their businesses online through Jio Mart.”
Dunzo co-founder and CEO Kabeer Biswas said: “With this investment from Reliance Retail, we will have a long-term partner with whom we can accelerate growth and redefine how Indians buy their daily and weekly essentials. We are thrilled with the traction and speed that Dunzo Daily has achieved and, over the next three years, we aim to establish ourselves as one of the country’s most trusted fast trade providers.”
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