It’s never easy to make purchases or drop off packages when people get busy with their office work or get stuck in traffic, or might even end up forgetting about something completely. Dunzo can change the way people move things, how they shop. It is an app that connects the customer to the nearest delivery partner who can make purchases, pick up items from any store or restaurant in the city, and deliver at the doorstep.
Dunzo, an Indian start-up headquartered in Bengaluru, was founded by Kabeer Biswas, along with Co-founders Ankur Agarwal, Dalvir Suri, and Mukund Jha, in 2014. Google has funded in 2017. It provides delivery services in cities like Bengaluru, Delhi, Gurugram, Pune, Chennai, Jaipur, Mumbai and Hyderabad.
Dunzo is a 24/7 delivery platform which fetches and delivers anything and everything within the city, guaranteeing super-quick delivery. This company also operates its Bike Taxi service in Gurugram.
STORY BEHIND DUNZO
Prior to Dunzo, Kabeer Biswas founded a company called Hoppr, which was acquired by Hike in 2014. Kabeer when shifted to Bengaluru, got bored in six months. He decided to try a new business idea.
One of his small room in the duplex became the headquarters of Dunzo. He started spreading the concept to his friends. Soon he started running errands for people on the bike for himself and started making deliveries. People used to drop a message on his WhatsApp and he made sure that he completed the task.
He hired a few people from an NGO on a part-time basis to complete the task. In June 2015 this team completed 70 such deliveries rather than tasks in just one day. This gave
rise to the popularity of this concept and soon in the next three months, the startup got its first huge investment. In 2016 due to the surges in demand, the WhatsApp based service transformed to a mobile application, where the other co-founders joined in and made this app a huge success.
DUNZO – FOUNDERS AND TEAM
Dunzo was founded by Kabeer Biswas in 2015 as a WhatsApp service. He is the one who started working on the idea of Dunzo. When he was 28yrs old, he decided to save people’s time and initiated the plans for it. He graduated from Mumbai University and has also completed his masters from NMIMS Mumbai. In 2007, he started his career with Airtel as a product & sales manager.
Another co-founder of Dunzo, Ankur Agarwal is a computer science graduate from IIT Roorkee. Ankur had worked with the other co-founder Mukund Jha at Google and they also started an HR tech company named Filter.
The fourth co-founder is Dalvir Suri who is a graduate from Mumbai University. Dalvir had worked with IBM and was the head of operations and delivery at Cybrilla Technologies.
DUNZO – REVENUE
The Google-backed Hyperlocal delivery start-up Dunzo has reported a loss of Rs 169 crore in FY19 which is an increase by 671 percent compared to a loss of Rs 21.9 crore in FY18, documents filed with the Registrar of Companies (RoC) said.
This start-up reported total revenue of Rs. 35 Millions in FY19. Out of which, Rs. 7.6 Million was from “revenue from operations” and the rest amount of Rs. 27 Million from “other income”.
According to Dunzo’s annual statement, the start-up poured in total expenses amounting to Rs 172.45 crore during FY19, but the revenues failed to catch up. But it has filed its unaudited results for the first 10 months of FY20, which captures the growth story for the company. Its unit economics have been upside down in the last fiscal year as the company’s operating revenue grew 4.25 times to Rs 71.56 crore in FY20 from Rs 16.83 crore in FY19.
DUNZO – FUNDING AND INVESTORS
Dunzo raised its first round of funding of $6,50,000 in March 2016 from Aspada Ventures, accompanied by other investors including, Blume Ventures, Rajan Anandan, MD of Google India, and Sandipan Chattopadhyay. It raised $1.18 million in series A funding from Aspada.
In December 2017, Google made its direct investment in hyperlocal service Dunzo. It received $12 million from Google, with its existing investors, Blume Ventures and Aspada. It raised around $3.1M in series C funding from Blume Ventures and 3 other investors.
On 29 August 2019, Dunzo raised ₹34.56 crore funding by issuing debentures and Series C1 preference shares to the existing investor Alteria Capital.
On the 1st of Sept 2020, the hyperlocal startup raised $28 Mn through series E funding from Google and others. The leading investors in the Bengaluru based Hyperlocal logistic startup Dunzo are Lightbox, Cognizant, Kalpavriksh, Alteria Capital, Blume Ventures, STIC Ventures, Aspada Ventures, and Google.
DUNZO – STARTUP CHALLENGES
Dunzo has encountered many hiccups and challenges throughout its journey since its inception in 2015. The major problems with DUNZO were the inefficient delivery system, especially the time taken by the delivery partners making the deliveries, managing the website and mobile application, and major financial losses in the company. Apart from this, Dunzo is not available in all cities. They are now facing steep competition from Swiggy and Zomato. Till 2018, Dunzo was enjoying with its unique USP of delivering anything and everything at your doorstep till the time Swiggy arrived.
HOW DUNZO IS MACKING MORE DURING LOCKDOWN
The Google-backed hyperlocal logistic startup’s average order value has seen a 4 fold increase. The primary growth rate in perishable goods and food and beverages has seen a 3X growth, and essential goods share of orders on the platform has doubled.
During the countrywide lockdown due to COVID 19, people have not able to find a lot of essential items in nearby stores. They were left with no option but to order it online from shops a little far away or through grocery delivery apps. Many consumers chose to order from shops or a little further away through Dunzo.
Biswas noted that consumers ordering products from various categories also helped Dunzo increase margins on deliveries. While earlier people used to order one or two items from Dunzo, the behavior changed during the lockdown as orders grew in size and frequency. Some categories that saw a higher number of orders on Dunzo included groceries, fruits, medicines, and pet supplies.
Biswas said that orders like baby diapers and pet supplies are already profitable even if they are delivered for free. Moreover, the average order value has also increased, people are shopping for more categories faster,” Biswas added.
On 1st Sept. 2020, PepsiCo India has announced its partnership with Dunzo, an on-demand delivery service, to enable last-mile delivery of its food brands – Lay’s, Kurkure, Doritos, and Quaker. By tapping the ‘daily grocery’ on Dunzo’s app, customers can visit the Lay’s E-store and get these products delivered within an hour of ordering. This initiative has currently been launched as a pilot project in Bengaluru and will eventually expand to 4 more cities across Mumbai, Gurugram, Delhi, and Jaipur.