Task management startup Dunzo has secured INR 7 crores in a debt funding round led by venture capital firm Alteria Capital, VCCircle reported. The Bengaluru-based firm raised the funds by issuing secured non-convertible debentures.
Dunzo plans to utilize the funds to expand its service offerings and manage corporate operations more effectively. The hyperlocal delivery firm was founded by Dalvir Suri, Kabeer Biswas, Ankur Aggarwal and Mukund Jha back in 2015. It provides a cross-platform mobile app to help users create different tasks, track the progress of the created tasks and pay online using various payment methods.
Users can pay bills, buy groceries, schedule laundry pickup, get car services, get their phones repaired and perform several other day to day tasks easily. Dunzo currently operates in six cities across India including Bengaluru, Pune, Gurugram, Delhi, Chennai and Hyderabad.
Last financial year in 2017-2018, Dunzo recorded a turnover of INR 98.5 lakhs. The startup witnessed a tremendous growth in turnover which was mere INR 71,000 previous financial year in 2016-2017. However, it recorded a five fold increase in its net loss to INR 10.75 crores in FY17 from INR 2.13 crores in FY16.
Google invested INR 92 crores ($12.3 million to be exact) in Dunzo along with venture firms Aspada and Blume Ventures last year in December 2017. Prior to this, the startup raised around INR 8 crores ($1.2 million) from Aspada in November 2016.
Alteria Capital was founded by former InnoVen Capital executives Vinod Murali and Ajay Hattangdi. The venture capital firm has invested in startups like Universal Sportsbiz, Vogo, Toppr and RAW Pressery.
Earlier last month, Alteria Capital marked the second close of its maiden fund at ₹625 crore. The fund called Alteria Capital India Fund I has set a target corpus of ₹1,000 crore, including a greenshoe option of ₹200 crore.