Dunzo close to raising up to $20 million

BENGALURU: On-demand task management app Dunzo is in the final stages of closing a $15-20 million round, according to three people familiar with the matter. A new strategic investor is expected to pump in money along with existing backer Google, which is expected to invest on a pro-rata basis, one of the persons mentioned above said, requesting anonymity.

News of the investment comes at a crucial time for Dunzo as the competition in the hyper-local delivery space has intensified. Food-delivery platform Swiggy recently announced its foray into delivery products beyond food to better utilise its delivery fleet. If the investment in Dunzo goes through, it may give the company a slight impetus to compete with Swiggy, which recently secured $1 billion in funding.

“These are capital-intensive businesses and funding is like oxygen for them,” said one of the investors in the grocery-delivery space, requesting anonymity. “Dunzo has carved out a position for itself, especially with nonroutine

A NEW INVESTOR MAY PUMP IN MONEY ALONG WITH EXISTING BACKER GOOGLE, WHICH IS EXPECTED TO INVEST ON A PRO-RATA BASIS

deliveries, but Swiggy would probably eat into Dunzo’s share when it comes to standardised deliveries such as groceries,” the person said.

Google did not immediately respond to queries sent by Mint. Dunzo declined to comment on its fund-raising plans.

Dunzo, which was launched on Whatsapp in 2015, provides a platform for consumers to be able to get tasks done and products delivered.

Dunzo is present in six cities including Bengaluru, Hyderabad and Gurgaon.

During October 2018, Dunzo claimed to have crossed one million transactions.

To further utilize its fleet in these six cities, the business-to-consumer company recently forayed into business-to-business services too, according to two people familiar with the matter.