Hyperlocal logistics company Dunzo has raised $12 million from new and existing investors including Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada and Alteria Capital. With this, the Bengaluru-based firm has mopped up $40 million in its Series E round.
Dunzo had kicked off the round in September 2020 with a $28 million tranche led by Google and Lightstone, and Entrackr had exclusively reported on the fundraise. According to the company, it would use the fresh proceeds to focus on growth across its fastest-growing cities such as Mumbai, Chennai and Pune in the coming year.
As per Fintrackr, Dunzo was valued at $250 million during the infusion of the first tranche of its Series E round. Our estimates show that it has been valued $290-300 million (post money) with the fresh infusion.
Dunzo has confirmed to Entrackr that the fresh capital is a part of its Series E round. The fresh infusion would help Dunzo to ramp up its play against deep-pocketed rivals including Swiggy, Amazon and Flipkart.
According to Dunzo, the company continues to see strong growth across user segments, especially post the lockdown. Over the last six months, the Kabeer Biswas-led firm claims to have supported over 300 neighbourhoods across eight cities, delivering essential goods to users within 29 minutes on average.
The company further said that it recorded a 2X year-on-year growth in the annualised gross merchandise value to $100 million.
While the company has improved its financial performance in FY20, it needs to put in much work in the ongoing and coming fiscals to become a stable business. Its revenue from operations grew 35X to Rs 27.5 crore during FY20 from Rs 77 lakhs in FY19. On a unit level, Dunzo spent Rs 13.09 to earn a single rupee in operating revenue in FY20.
Over the past six-eight months, hyperlocal logistics segment has turned competitive as e-commerce heavyweights Amazon and Flipkart entered the quick delivery service which include delivery of grocery, dairy products, vegetables as well as mobiles, electronics and home accessories. Swiggy and Zomato also launched Swiggy Stores and Zomato Market, but both had shutdown the services recently.