Reliance Retail has purchased a 25.8 per cent stake in India's leading quick commerce player Dunzo for $200 million (nearly Rs 1,488 crore) as it looks to expand its presence in the grocery delivery business.
The delivery firm raised $240 million in its latest funding round that was led by Reliance Retail Ventures Ltd (RRVL) - the retail arm of Reliance Industries, the two companies said in a joint statement.
Existing investors Lightbox, Ligthrock, 3L Capital and Alteria Capital also participated in the funding round.
"With an investment of $200 million, Reliance Retail will own 25.8 per cent stake," the statement mentioned.
Isha Ambani, Director, Reliance Retail, said, "Through our partnership with Dunzo, we 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. Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through Jio Mart.”
Morgan Stanley acted as exclusive financial advisor and Cyril Amarchand Mangaldas acted as legal counsel to Dunzo. AZB & Partners acted as legal counsel to RRVL and Deloitte, Haskins & Sells LLP provided financial due diligence services.
Earlier this year, Dunzo had launched its instant delivery model 'Dunzo Daily' in Bengaluru. The Dunzo Daily model aims to deliver daily and weekly essentials within 15-20 minutes.
Kabeer Biswas, Chief Executive Officer (CEO) and Co-Founder, Dunzo, said, "With this investment from Reliance Retail, we will have a long-term partner with whom we can accelerate growth and redefine how Indians shop for their daily and weekly essentials."
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