Google, Lightbox reinforce their faith in Dunzo with a $40 million cheque

• Dunzo, local commerce and delivery startup, has raised $40 million from its existing investors Google, Lightbox, and others.
• Dunzo’s latest funding comes when stories of it having scripted a remarkable turnaround have been doing the rounds.
• The startup had last raised $11 million in venture debt funding from Alteria Capital in February 2020.

Dunzo, local commerce and delivery startup, has raised $40 million from its existing investors Google, Lightbox and Evolvence, Hana Financial Investment, LGT Aspada, Alteria Capital, among others.

The startup had last raised $11 million in venture debt funding from Alteria Capital in February 2020.

Dunzo’s latest funding comes at a time when stories of it having scripted a remarkable turnaround have been doing the rounds. According to an Entrackr report, Dunzo’s revenue has grown by 35 times in FY20 to ₹359.5 crore, while its losses ballooned to ₹330.8 crore.

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Even with the rising losses, it is a massive comeback from FY19, when it had registered a loss of ₹168.9 crores for a wafer-thin revenue of ₹76.59 lakh.

The company said that its gross merchandise volume is now double that of the previous year and stands at $100 million.

"Dunzo's mission resonated stronger than ever in 2020. We have been amazed by everything Merchants and Users have started to depend on the platform for. We truly believe we are writing a playbook for how hyperlocal businesses can be built with sustainable unit economics and capital responsibility," Dunzo Digital CEO and co-founder Kabeer Biswas said.