Hyperlocal concierge app Dunzo is ready to compete with challengers such as Swiggy Stores, Grofers, and BigBasket in the hyperlocal delivery space.
The Bengaluru-based company is close to securing INR 80 Cr ($11.5 Mn) in a Series C funding round led by Google, Blume Ventures, Altera Capital, Greyhound, and Beeline in this ongoing Series C round, a Ministry of Corporate Affairs filing showed.
While Google is investing INR 34.5 Cr, Algeria is investing INR 7 Cr. Blume Ventures, Beeline, and Greyhound are investing about INR 6.9 Cr each in this round.
According to the Ministry of Corporate Affairs filings, Dunzo Digital Pvt Ltd, Dunzo’s parent company, has issued 14,235 Series C CCPS worth INR 75.34 Cr and 500 non-convertible debentures worth INR 5 Cr.
While Algeria Capital bought 500 debentures to issue venture debt of INR 5 Cr, it also participated with other investors in the INR 75 Cr funding round.
According to its valuation report dated February 15, 2019, the company values each share at INR 52,927.20.
The company filings showed that the funds had been raised for the furtherance of the business and by the business plan to achieve purposes such as setting up infrastructure and routine operations and product development of the company.
Done: Changing The Hyperlocal Game
Dunzo was founded in 2015 by Ankur Aggarwal, Dalvir Suri, Mukund Jha, and Kabeer Biswas. It is an AI-driven chat-based hyperlocal services app that enables users to create to-do lists and collaborate with partners (vendors) to complete them.
It leverages AI to provide vendors for shipping packages, buying products, repairing stuff, and home services. Users can also complete their personal tasks through the app, which may include paying bills, getting car services, and repairing things, among many others.
As of October 2018, Dunzo claimed to have completed over 1 Mn transactions, with an average daily volume of 30 K, mainly from four cities: Gurugram, Hyderabad, Pune, and Chennai.
The company last raised $422K (INR 3 Cr) from MakeMyTrip founder Deep Kalra and $3.1 Mn (INR 22.49 Cr) in its Series C from a group of popular investors ding round from a group of po Just Delivery?
The consumer services segments saw a hyperlocal bubble during 2015-16. The abundance of ‘me-too’ startups (400 were recorded at the time), low margins, and loss of investors’ trust caused more than 100 startups to shut shop in the said period.
Among those who lost in the hyperlocal bubble included Flipkart’s grocery delivery division Nearby; Ola’s food delivery service ‘Ola Cafe’ and grocery delivery service ‘Ola Store’; on-demand grocery delivery startup PepperTap rolled back its consumer-centric grocery app and pivoted to a full-stack e-commerce logistics company, and Helpchat also did yet another pivot closing its entire chat-ops to move towards a chat-less service. Even Grofers rolled back their operations from several Tier 2 cities to cut operational costs.
Now, the consumer services segment is again filled with hyperlocal players who claim to ensure there is nothing a consumer can do with a tap on the phone. Today, food, medicines, groceries, salon services, carpenters, musicians, teachers, gifts, and so much more are available for users to choose from and deliver in the comfort of their homes or offices.
A report titled “India Hyperlocal Market Outlook to 2020—Driven by Rising Startup Firms and Fluctuating Investments” by market research firm Ken Research predicted that the local market will reach over n (INR 2,306 Cr) by 2020.
Recently, food delivery company Swiggy forayed into the on-demand hyperlocal category, offering everything from flowers and vegetables to health and supplements, with the launch of ‘Swiggy Stores’ integrated within the app.
The service is currently available in Gurugram. Swiggy claims to collaborate with more than 3,500 stores in the national capital region, including merchant partners like Ferns and Petals, Le Marche, Needs Supermarket, Licious, Zappfresh, MomsCo, Apollo, and Guardian Pharmacy, and help them drive their order volumes through the platform.
Many other players, such as DoneThing, Haptik, HelpChat, and Hike-owned personal assistant bot Natasha, are also looking to strengthen their presence in the hyperlocal space.
Online travel company MakeMyTrip has also begun offering hyperlocal services through its newly launched feature ‘Experiences’. This feature offers leisure activities such as food walks, daycations, museum visits, and sporting events.
As comfort becomes a major selling point for the consumer services market, investor attention and trust are back in the hyperlocal space. Should we fear a bubble burst soon, or is it finally time for the hyperlocal market to bloom and bring back results?
Dunzo was included in the 2018 coveted list of India’s most innovative startups—42Next by Inc42.
