Reliance Industries Ltd’s retail arm has invested $200 million for a 25.8% stake in the Indian online delivery platform Dunzo. The idea is to get a foothold into the rapidly growing market of superfast dispatch of household goods.
Dunzo will use the funds to expand to 15 cities from its current seven-city operation.
Mukesh Ambani-owned Reliance Industries said on Thursday its retail arm led a $240 million funding round in Bengaluru-based Dunzo which offers lightning-fast delivery of groceries and medicines and even offers to pick up and drop off documents and other items.
“Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth,” said Isha Ambani, director, Reliance Retail Ventures Ltd. The partnership will help them take advantage of the shift in consumption patterns towards online services.
Demand for services like Dunzo boomed during the pandemic when people were ordering indoors and only delivery of essential items was allowed. This massive demand has also led players to intensify their battle in ensuring users are able to get their orders in 15 minutes or less.