Task management app Dunzo has raised Rs 7 crore by issuing non-convertible debentures to venture debt firm Alteria Capital. This is Alteria’s sixth investment since its launch in last year.
According to a VCCircle report, the Google-backed startup will deploy the latest proceeds towards expanding its service offerings and for general corporate purposes. Dunzo is currently live in Bengaluru, Pune, Hyderabad, Gurugram, Delhi, and Chennai. Besides, it is also planning to launch in Mumbai by the end of this quarter.
In Chennai, Dunzo will be working with a hyperlocal delivery service Genie. It will absorb the entire team of Genie that has over 1500 delivery personnel.
Founded by Kabeer Biswas, Ankur Aggarwal, Dalvir Suri and Mukund Jha in 2015, Dunzo allows individuals to create ‘To do lists’ and collaborate with vendors to strike off the tasks from the list with a chat based interface.
The company’s task volumes primarily come from pickups and drops and bike taxi (about 50%) and about 50% by buying and selling (grocery, medicine pet foods).
With a usersbase of around 250,000, the company’s transaction volume hovers around 1 million and it projects to reach 2.5 million transactions by the year-end and a whopping 20 million transaction by 2020.
As of now, Dunzo’s 40 per cent traffic comes from Bengaluru followed by Gurugram and Pune with 35 per cent and 25 per cent respectively.
So far, Dunzo has raised about $14.5 million risk capital across three rounds. Search giant Google had led $12.4 million Series B round in December last year. Previously, it raised $1.18 million Series A funding from Aspada Investment Advisors and $650K seed capital from Blume Venture, and angels including Rajan Anandan and Sandipan Chattopadhyay.
The company’s financial report for FY17 showed its turnover rose to Rs 98.5 lakh from Rs 71,000 in the previous fiscal. The company’s net loss and expenses also grew by over five-fold to Rs 10.75 crore and Rs 11. 79 crore respectively. It is yet to file its financial report for FY18.