Dunzo raises $11 million to fend off losses in a market crowded with Amazon, Flipkart, Swiggy and more

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  • Hyperlocal delivery startup Dunzo has just raised $11 million in venture debt fund from Alteria Capital to move on the path of profitability.
  • Dunzo registered a loss of ₹168.9 crores in FY19 for a wafer thin revenue of ₹76.59 lakh.
  • The competition is only increasing in the segment, with JioMart too entering grocery delivery.
In 2019, multiple startups in India posted massive losses. From Paytm, OYO, Zomato, Swiggy to Dunzo, startups had a tough time managing losses in 2019 and now, most of them are trying to turn their business around.

Hyperlocal delivery startup Dunzo has just raised $11 million in venture debt fund from Alteria Capital that will help it move to profitability.

“From the early stages of Dunzo, we’ve always focused on building a sustainable business model. Profitability has always been the barometer of success and we’re seeing it manifest across several of our micro-markets. As we deploy this playbook into other cities, we’re extremely conscious of what our consumers want,” said Kabeer Biswas, CEO & Co-Founder, Dunzo.

Biswas added that as certain markets turn profitable, they are able to fuel growth with debt while having a significantly higher return on investment for customers and stakeholders

Dunzo registered a loss of ₹168.9 crore in FY19 over a wafer thin revenue of ₹76.59 lakh. Its losses have grown eight times over, whereas its revenue even with a five-fold increase is still minuscule compared to its losses.

Dunzo, Google’s first direct investment in India, raised $45 million in a series D round from Lightbox, 3L Capital and others in 2019.

But the hyperlocal delivery market is also heating up in India. From Amazon, Flipkart turning to grocery delivery, to JioMart entering the market, it has many bigwigs competing. Swiggy too launched Swiggy Go in early 2019, while startups like Grofers and MilkBasket have reported profitability for certain markets.

See Also:
These are the top startup investment deals that got VCs interested in 2019
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