Hyperlocal logistics company Dunzo is in advanced talks to raise a $30 million internal round from existing backers, according to three sources aware of the development.
If the deal goes through, the fresh equity financing round for the Bengaluru-based company will be after 9-10 months.
According to the sources, Dunzo has been in the market since March-April for a fresh round. “The deal is almost done and it will be announced soon. The round may go up to 50-60 million if new investors join the round,” said one of the sources on condition of anonymity. “Aspada Ventures will lead the round at a valuation of $250 million. Lightbox, Google, and STIC will join on a pro-rata basis,” the person added.
Dunzo had raised $45 million in its Series D round in October 2019. According to regulatory filings, Lightbox infused $20 million while Google and STIC had put in $10 million each. The company was reportedly valued $180-200 million at that time.
The sources also indicated that Dunzo was burning over Rs 30 crore a month in FY20. This was also evident from its unaudited financial results for the first 10 months of FY20. Dunzo’s annualized total expenditure during the fiscal ending March 2020 amounted to Rs 407.6 crore, ballooning 2.3X from Rs 178.3 crore in FY19.
Meanwhile, the company’s unit economics have improved drastically in the last fiscal as the company’s operating revenue grew 4.25X to Rs 71.56 crore in FY20 from Rs 16.83 crore in FY19. Importantly, these numbers are based on projections submitted by Dunzo as part of their regulatory filings and actual figures will be revealed later this year.
Responding to Entrackr’s queries, Dunzo neither declined nor confirmed the new round. “While we’ve definitely witnessed a growing interest from the investor community in India and globally when the time is right, we will be happy to keep you posted on the investment opportunities we have along the way,” said the company’s spokesperson.
Over the past six-eight months, Dunzo has also been experimenting with dark stores to help local retailers fulfill customer orders quickly. The company opened 10 such stores in Bengaluru, Chennai, and Pune by June. It is also investing in its B2B business from the second half of the last year.
Currently, the business-focused vertical constitutes about 6% of the company’s overall business. Close to 75% of its overall business is delivery from local stores and remaining from the courier service. About 18% of courier service is B2C, and 7% is B2B.