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Reliance Retail picks 25.8 pc stake in Dunzo: 8 points on the deal
Reliance Retail has bought a 25.8 per cent stake in Dunzo, India's leading quick commerce player, for USD 200 million (around Rs 1,488 crore) as it looks to expand its presence in online grocery delivery business.
Here's what we know about the deal:
1) Dunzo has raised USD 240 million (about Rs 1,787 crore) in its latest funding round that was led by Reliance Retail Ventures Ltd(RRVL) - the retail arm of Reliance Industries.
2) Existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in the funding round.
3) In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will enable hyperlocal logistics for the retail stores operated by RRVL, further adding onto Reliance Retail's omni-channel capabilities.
4) Dunzo will also facilitate last-mile deliveries for JioMart's merchant network.
5) 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 the Indian cities 6) Through the partnership with Dunzo, the company will be able to provide increased convenience to Reliance Retail's consumers and differentiated customer experience through rapid delivery of products from Reliance Retail stores.
7) Currently, Dunzo is available across seven metro cities in India and the additional capital will be used to expand the quick commerce business to 15 cities.
8) Dunzo launched its instant delivery model Dunzo Daily' in Bengaluru earlier this year, which is seeing over 20 per cent week-on- week growth.