India’s top local delivery startup Dunzo is in late talks to raise $50 million in a new round of financing as Bengaluru-headquartered startups seek to find comfort in the winter season for young companies, two sources familiar with the matter told TechCrunch.
Dunzo’s backers Reliance Retail and Google are among those in talks to invest in the new round, the sources said on condition of anonymity because the information is private. Funding discussions are moving forward largely with existing backers, the sources said.
According to the Economic Times of India, the startup has been on the market for several months to raise capital and was looking to raise at least $70 million and up to $150 million.
Dunzo founder and CEO Kabir Biswas declined to comment on Thursday. Google and Reliance Retail did not immediately respond to a request for comment.
Dunzo competes with Swiggy Instamart, YC startup Zipto, Tata-owned BigBasket and Zomato’s BlinkIt, all of which are trying to court a slice of India’s retail market, which is expected to grow to over $800 billion by 2025, according to broker estimates. Strong Bernstein.
Delivery startups, especially among the most crowdfunding businesses, have found it challenging to raise new rounds of financing, especially in a weakening global economy.
Swiggy Instamart business head Karthik Gurumurthy said he will step down from the role on Friday. Building Instagram is “exhausting, with many compromises on physical and mental well-being,” he wrote in a LinkedIn post.
It is a dynamic that is playing out globally. The European express delivery market has consolidated to three companies. Instacart is down from $39 billion in March 2021 to $10 billion.
Story has been updated with more details on Instamart.
Further readingReliance JioMart to shut down express delivery service (Economic Times)