Mukesh Ambani’s Reliance Retail is investing $200 million in instant shipping startup Dunzo, making it the single biggest shareholder in Dunzo with a simply about 26% stake.
“We’re seeing a shift in consumption patterns to on-line and had been highly impressed with how Dunzo has disrupted the gap,” Isha Ambani, a director of Reliance Retail Ventures, talked about in a observation the day before right this moment (Jan. 6, pdf). Reliance Retail is the retail unit of Reliance Industries, and operates the conglomerate’s grocery industry, as successfully as area of abilities stores.
Reliance and Dunzo failed to showcase the Bangalore-based startup’s valuation as outcomes of the financing spherical. However an estimate based on the scale of the stake going to Reliance suggests a valuation of around $775 million—formulation bigger than $300 million the company was once finally year.
What does Reliance accumulate from the Dunzo deal?
With the latest acquisition, Reliance will be in mutter competition with retail rival Amazon, which has a similar service called Amazon Recent for rapidly grocery shipping. Other Indian gamers on this emerging space comprise the food and grocery shipping app Swiggy, the unique unicorn Blinkit (beforehand identified as Grofers), and newly founded gamers comparable to Zepto.
The startup, which is also backed by Google, is currently working in seven markets and plans to accumulate into 15 unique cities with the help of the freshly infused capital by Reliance. The shipping startup promises shipping of invent and other day-to-day requirements within 15-20 minutes.
The corporations talked about Dunzo will take care of “hyperlocal logistics” for Reliance’s retail tales, as successfully as help with final-mile shipping for JioMart’s community of neighborhood retailers.
Reliance Retail’s slew of acquisitions
The Dunzo funding is the latest in a assortment of acquisitions by Reliance Retail within the final three years.
