Reliance Retail has acquired 25.8 per cent stake in online delivery platform Dunzo
Reliance Industries Limited’s (RIL) retail arm has invested $200 million in online delivery platform Dunzo as it looks to get a foothold in the country’s rapidly growing market of quick delivery.
Reliance Retail has acquired a 25.8 per cent stake in Dunzo for $200 million (around Rs 1,488 crore).
Dunzo raised $240 million in its latest funding round that was led by Reliance Retail Ventures Limited.
Existing investors Lightbox, Ligthrock, 3L Capital and Alteria Capital had also participated in the funding round.
“This round is a reinstatement of confidence of existing and new investors in Dunzo’s potential and success in creating an exceptional user experience. The capital will be used to further Dunzo’s vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities,” the two entities said in a statement.
Dunzo, the Bengaluru-based online delivery platform, has launched Foodcourt as a new category to let users place food orders from multiple restaurants in a single order. Initially available in Bengaluru’s Koramangala neighbourhood, the new category is aimed to help individuals order different food items from a variety of restaurants at one go. Dunzo has partnered with cloud kitchen firm [email protected] to enable the new experience. The Google-backed startup is also bullish on expanding the Foodcourt category to other locations in the near future.
Director of Product Management for User Products and Growth Brijesh Bharadwaj took to Twitter to announce the launch of Dunzo Foodcourt. The new category debuted with 25 restaurants and is available for access through the Duzno app — alongside existing delivery categories.
Bharadwaj said in a tweet thread that the new category is designed to address the scenario where each household doesn’t want the same thing. He added that sometimes even one user wants different items from different restaurants in the same order.
Dunzo Foodcourt lets users add food items from multiple restaurants to one single order Photo Credit: Twitter/ Brijesh Bharadwaj
Dunzo is initially providing discounts to users placing new food orders through the Foodcourt category. Bharadwaj also optimistically responded to user queries on the expansion of the new category beyond Koramangala.
As reported by YourStory, Dunzo had to rehaul its ordering system to enable the new experience. The company also provided a new user interface to highlight different products from distinct restaurants. In terms of expansion, Dunzo is initially planning to get sufficient data and insights to look for a new location.
Bharadwaj, through his tweets, also suggested that Dunzo may enable a similar category to order groceries as well.
“In about three months, you should be able to find everything you want in one store,” he said.
The new move by Dunzo could give a tough fight to Swiggy and Zomato that both currently don’t allow users to add different food items from multiple restaurants in one order and restrict their orders to one restaurant at a time.
Jagmeet Singh writes about consumer technology for Gadgets 360, out of New Delhi. Jagmeet is a senior reporter for Gadgets 360, and has frequently written about apps, computer security, Internet services, and telecom developments. Jagmeet is available on Twitter at @JagmeetS13 or Email at [email protected] Please send in your leads and tips. More