Google-backed Dunzo adds another feather to its cap with Alteria Capital’s $11 Million Investment1 month ago Shravani Maddirala
The $11 Million Investment of Alteria Capital into Bengaluru-based Dunzo Digital Pvt. Ltd is to help the company scale in existing geographies while retaining value for its existing shareholders, including employees, as per a press statement. “Profitability has always been the barometer of success and we’re seeing it manifest across several of our micro-markets,” Kabeer Biswas, co-founder at Dunzo, said. He further added, “In this journey, as markets turn profitable, we are able to fuel our growth with debt while having a significantly higher return on investment for customers and stakeholders.”
Founded in 2015, Bengaluru-based Dunzo is your personal concierge – from filling out shopping lists to picking up the charger you forgot at home or delivering your favorite pizza to your office, it does it all. Dunzo is an Indian startup that can buy, pick up anything the customer wants in Bengaluru, Delhi, Gurgaon, Pune, Hyderabad, and Chennai. The organization additionally works a Bike Taxi administration in Gurgaon, Noida, and Hyderabad. Dunzo is a chat-based personal management platform that allows users to create and manage their daily tasks. So far, Dunzo has received $86.7 million in funding. Prior to this investment, Dunzo had received $45 million in a Series D funding led by giants like Google, Lightbox Ventures, 3L Capital, and STIC Investment & STIC Ventures, among others in October 2019. And now, with the inclusion of these funds, the total capital raised by the company stands at over $86.7 million.
The multi-functioning app with even a B2B version, commenced from WhatsApp where it would respond and act according to the needs which are typed out by users. Dunzo was founded by Biswas, Mukund Jha, Dalvir Suri and Ankur Aggarwal in 2015. It operates a task management application that allows users to create to-do lists. The company currently has 4,000 riders, covering almost 75% to 80% of Bengaluru, and it hopes the numbers will rise to 25,000 by the end of 2018. There have been around 1 lakh app downloads and it is executing around 1.2 lakh tasks every month. Around 70% of the tasks are purchased, and 25% are pickups. Dunzo’s platform combines the use of both artificial intelligence and human operators to offer its services. In May last year, the company raised funding from Kalpavriksh, the private equity arm of financial services firm Centrum.
The venture debt firm Alteria Capital was founded by Murali and Ajay Hattangadi in 2017. The two were former executives at InnoVen Capital. The firm focuses on innovative startups that are backed by strong venture capital sponsors. It looks for capital-efficient business models and a clear differentiation strategy among potential investors, according to its website. Apart from Dunzo, some of the firms in its portfolio include financial technology firm Lendingkart, used car platform Spinny, education-technology startup Toppr and health-technology firm Portea.
“Kabeer and the team at Dunzo have ensured that the benchmark for hyperlocal services has been raised significantly,” said Vinod Murli, Managing Partner at Alteria Capital. He added, “While this segment is quite competitive, Dunzo is equipped to be a market leader in the medium term and we are very happy to double down on a high performing company in our portfolio.”
The story of the StartUp Dunzo is truly inspirational for any budding startups by setting an excellent example of the need-based approach to lead the way to consumers. By learning from their mistakes and taking constructive criticism, Dunzo has come a long way and paved itself a road to success. The wait for anything and everything is officially over. Need something? Just Dunzo it!