Business

Reliance takes 26% stake in delivery firm Dunzo for $200 million

Demand for companies like Dunzo and SoftBank-backed Swiggy’s Genie has boomed throughout the pandemic when folks had been ordered to stay indoors and solely delivery of important objects was allowed.

Reliance Industries Ltd’s retail arm has invested $200 million for a 25.8% stake in Indian on-line delivery platform Dunzo to get a foothold into the quickly rising market of superfast dispatch of family items.

Billionaire Mukesh Ambani-owned Reliance Industries stated on Thursday its retail arm led a $240 million funding spherical in Bengaluru-based Dunzo which provides lightning quick delivery of groceries and medicines and even provides to select up and drop off paperwork and different objects.

Demand for companies like Dunzo and SoftBank-backed Swiggy’s Genie has boomed throughout the pandemic when folks had been ordered to stay indoors and solely delivery of important objects was allowed. This large demand has additionally led gamers to accentuate their battle in guaranteeing customers are in a position to get their orders in quarter-hour or much less.

Dunzo, which counts Alphabet Inc’s Google and Lightrock amongst its backers, will use the funds to increase to fifteen cities from its present seven-city operation.

Last month, Grofers which provides on-line delivery, rebranded itself as Blinkit with a promise to hurry up deliveries. The company makes 10-minute drop-offs to prospects with the assistance of greater than 100 companion shops or warehouses in eight cities.

Reliance has been ramping up its JioMart e-commerce arm in an effort to stave off competitors from Amazon.com and Walmart Inc’s Flipkart in an e-retail market India forecasts can be value $200 billion by 2026.

Last year, Reliance additionally provided mother–and–pop shops, generally known as ‘kiranas’, the choice to order items on JioMart Partner with deliveries promised inside 24 hours, circumventing the standard route of going via salesmen representing shopper giants.

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