Bengaluru-based hyperlocal services startup Dunzo is in talks to raise a fresh round of ₹350 crores ($50 million). This latest round follows the Dunzo’s recent ₹80 crores ($11.5 million) funding in Series C round from Google, Blume Ventures, Alteria Capital, Greyhound, and Beeline.
Founded by Ankur Aggarwal, Dalvir Suri, Mukund Jha, and Kabeer Biswas in 2015, the AI chat-based hyperlocal app has been finding it difficult to raise money. The startup was also in talks with Zomato for a potential acquisition. But that didn’t go well. Dunzo lets users create to-do lists and collaborate with vendors.
The startup has managed over 1 million transactions (more than 30,000 daily transactions) until October 2018. Customers can avail services like buying products, repairing stuff, home services and shipping of packages using the app. The app can also be used to create a personal to-do list including paying bills, car services, and virtually anything and everything.
Dunzo raised ₹3 crores ($422,000) from MakeMyTrip’s founder Deep Karla and ₹22.49 crores ($3.1 million) in series C funding from a group of angel investors in February this year. It competes with startups like Swiggy Stores, SoftBank-backed Grofers and Alibaba-backed Bigbasket.
Some chat-based apps include Reliance-acquired Haptik, Hike’s Natasha and HelpChat also operate in the hyperlocal service segment. The hyperlocal market in India is expected to touch ₹2,306 crores by 2020