Indian hyperlocal delivery startup Dunzo is in late-stage discussions to secure around $50 million in a new round of funding, two sources familiar with the matter told TechCrunch, as the Bangalore-based startup seeks comfort in a winter financing for younger companies.
Reliance Retail and Google, two of Dunzo’s existing backers, are among those holding talks to invest in the new round, said the sources, who requested anonymity as the information is private. Funding deliberations are currently largely moving forward with existing backers, the sources said.
The startup has been in the market to raise capital for several months and was looking to raise at least $70 million and up to $150 million, according to the Indian newspaper. economic times.
Kabeer Biswas, Dunzo’s co-founder and chief executive officer, declined to comment Thursday. Google and Reliance Retail did not immediately respond to a request for comment.
Dunzo competes with Swiggy’s Instamart, YC Continuity-backed Zepto, Tata-owned BigBasket and Zomato’s BlinkIt, all of which are trying to court a slice of India’s retail market estimated to grow to more than $800 billion by 2025, according to estimates. from the brokerage Bernstein signature.
Delivery start-ups, generally among the biggest money-guzzlers, are unsurprisingly finding it especially difficult to raise new rounds of financing amid the weakening global economy.
Karthik Gurumurthy, head of Swiggy’s Instamart business, said on Friday that he would step down. Building Instamart has been “arduous with many commitments to physical and mental well-being,” he wrote in a LinkedIn post.
It is a dynamic that is developing worldwide. Europe’s express delivery market has been consolidated into three companies. Instacart has reduced its internal valuation to $10 billion, up from $39 billion in March 2021.
The story was updated with more details on Instamart.
Other reading: Reliance JioMart shuts down its ‘Express’ fast delivery service (economic times)
