Dunzo Success Story - The Trendsetting Journey of the Product Delivery Startup in India

Anik Banerjee Anik Banerjee Rishabh Rathi Rishabh Rathi
Jan 7, 2022 12 min read
Dunzo Success Story - The Trendsetting Journey of the Product Delivery Startup in India

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Dunzo.

We yearn to enjoy hassle-free lives and smartphones have a major role to play in achieving this dream. Mobile apps have given us the kind of freedom and the opportunity to leverage the same, which was hard to imagine even a decade back. Product delivery is one such thing that has been streamlined with the radical innovations in mobile apps. However, pick and drop services in India were rather expensive, chaotic, and troublesome, dominated by the unorganized players until Dunzo came up with its promising delivery services at nominal charges.

Founded in 2015, Dunzo has been a blessing for many out there when it comes to delivery-related tasks.

The kind of features Dunzo offers will indeed make you slouch on your couch. With thousands of positive reviews and admiration from investors, Dunzo is in the process of creating an impact.

Read on to find out more about Dunzo's Startup Story, Founders and Team, Business Model, Revenue Model, Funding and Investors, Growth, Logo, Tagline, Competitors, Challenges and more.

Dunzo Company Highlights

Startup Name Dunzo
Headquarter Bengaluru, India
Sector Online Consumer Services
Founders/Owners Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha
Founded July 2014
Parent Organization Dunzo Digital Private Limited
Revenue From Operations $6.22 mn (Rs 45.8 crore) (FY21)
Total Funding ~ $368.4 Million (January 2022)
Annualized GMV $80.76 Million(FY21)
Valuation ~ $775 mn (January 2022)
Competitors Swiggy Go, Jhutpat, Meratask , Jugnoo
Area Served India
Website dunzo.com

Dunzo - Latest News
Dunzo Digital as part of the Drone Vaccine Delivery Initiative in Telangana
Dunzo - About and how Dunzo works
Dunzo - Founders/Owners and Team
Dunzo - Startup Story
Dunzo - Mission and Vision
Dunzo - Name, Tagline, and Logo
Dunzo - Business Model and Revenue Model
Dunzo - Growth and Revenue
Dunzo - Funding and Investors
Dunzo - Startup Challenges
Dunzo - App
Dunzo - Awards and Achievements
Dunzo - Competitors
Dunzo - Future Plans
Dunzo - FAQs


Dunzo - Latest News

January 6, 2022 - Reliance Retail leads the latest Dunzo funding round where it infuses $240 mn along with some other investors including Lightbox, Lightrock, 3L Capital, Alteria Capital, and others. The Mukesh Ambani-led company also picks up 25.8% stakes in the company for $200 mn.

October 21, 2021 - Dunzo may see its next investment round led by Mukesh Ambani-led Reliance Jio. This might be a smart move from the billionaire eyeing the Reliance super app.

September 18, 2021 - Skye Air, a part of the Dunzo MedAir consortium for the Government of Telangana’s ‘Medicines from the Sky’ project, will collaborate with Dunzo Digital to bring in fast and efficient healthcare logistics.

Dunzo Digital as part of the Drone Vaccine Delivery Initiative in Telangana

Dunzo Digital has currently been called upon along with Skye Air, a part of the Dunzo MedAir consortium for the Government of Telangana’s ‘Medicines from the Sky’ project to enable faster and efficient healthcare logistics. Soon after, the permission that was granted to the Telangana government to use drones within the visual line of sight (VLOS) for the experimental delivery of Covid-19 vaccines from the Ministry of Civil Aviation (MoCA) for one year, the state government tied up with Dunzo Digital.

The trials of the delivery of the vaccines are scheduled to begin on September 20, 2021, and will start from Vikarabad, Telangana, as per the reports dated September 18, 2021. They are expected to continue till September 25, 2021. The Dunzo Digital and Skye Air duo will demonstrate numerous healthcare logistics-related use cases as part of the trials.

Dunzo - About and how Dunzo works

Dunzo is a hyper-local on-demand delivery service in India. It delivers anything and everything as and when needed with minimum delivery charges. For instance, if you forget some documents at home, Dunzo can get them to your office. Besides, if you are in a situation where you would like to buy a t-shirt from a mall but are not in a position to go there and purchase it, Dunzo will get it for you.

Dunzo also has tie-ups with some restaurants, clothing stores, and a few general stores as well. It is currently providing services in the following cities – Bengaluru, New Delhi, Gurugram, Pune, Chennai, Mumbai, Jaipur and Hyderabad. Dunzo is helpful for people who do not want to go out, cannot go out for some reason, and want to buy or send over some product/item.

Dunzo Digital Private Limited is the parent company of the hyper-local demand delivery service startup Dunzo. It was incorporated on July 8th, 2014, and is registered at the Registrar of Companies, Bangalore.

Dunzo - Founders/Owners and Team

Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha are the founders of Dunzo.

Kabeer Biswas

Kabeer Biswas ideated Dunzo. At the age of 28, he decided to save people's time and initiated the plans for Dunzo. He is an engineer who graduated from Mumbai University and completed his Master's from the Narsee Monjee Institute of Management in Mumbai. In 2007, he started working with Airtel as a product and sales manager. Kabeer subsequently served in the New Product Development and the Product divisions of Y2CF Digital Media and Videocon Telecommunications respectively before founding Dunzo. Kabeer is currently appointed as the CEO of Dunzo.

Dunzo owner
Co-Founders of Dunzo

Ankur Agarwal

Ankur Agarwal, a computer science graduate from IIT Roorkee, is the co-founder of Dunzo. Ankur worked with the third co-founder Mukund Jha at Google and the duo also started an HR tech company named 'Filter'.

Mukund Jha

Mukund Jha is the Co-founder and CTO of Dunzo. After completing his BTech., Computer Science from Motilal Nehru National Institute of Technology, Jha pursued his Master's in Computer Science from Columbia University, where he also served as a research assistant later before moving on to join Google as a software engineer. He served as a software engineer for a little less than 3 years before founding Wisdom.ly and Habet, which he founded in 2013 and 2014. Dunzo was the third company that he co-founded with Ankur, Kabeer, and Dalvir in 2015.

Dalvir Suri

Dalvir Suri is another Co-founder of Dunzo, who is a BE Information Technology graduate from Sardar Patel Institute of Technology of Mumbai University. Dalvir had previously worked at IBM as an Application Developer and a Security and Privacy Consultant. Next, he went on to be the Head of Operations and Delivery at Cybrilla Technologies before co-founding Dunzo in May 2015.

We are at about 900 employees across eight cities, said Founder-CEO Kabeer Biswas when last reported in March 2021.


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Dunzo - Startup Story

Kabeer Biswas got bored in six months after shifting to Bengaluru. He decided to test a new business idea based on a self-completing, to-do-list product. This was the core idea behind Dunzo. His small room in a duplex became the headquarters of Dunzo. He then started spreading the word about the concept to his friends, which began to spread fast. Kabeer soon started running errands for people on bikes and completed deliveries all by himself. People dropped a message on his WhatsApp number and he ensured their task was done.

To help him in this initiative, he hired a few people from an NGO on a part-time basis. This team completed 70 deliveries in just one day in June 2015. This gave Dunzo a popularity boost and in the next three months, the startup received its first major investment. Due to the surge in demand, the WhatsApp-based business and service were transformed into an app in 2016. Other co-founders stepped in and made the Dunzo app a huge success.

Dunzo- Startups in India | Startup Story

Dunzo - Mission and Vision

Dunzo's mission is "to be the logistics layer of every city." The vision of the company is to expand all across the country and emerge as the go-to delivery service provider of each of the cities.

Dunzo is a slang abbreviation that refers to 'do, over, and finished'. The company kept the name Dunzo to finish the work that people had pending or wanted to delegate. The idea behind the logo and the brand is to be quick, reliable, and bold. Dunzo is about being constantly on the move.

"Just Dunzo it!" says the Dunzo tagline.

Dunzo Logo
Dunzo Logo

Dunzo - Business Model and Revenue Model

Dunzo functions through an app and a website. It provides on-demand concierge service in the hyper-local market. Dunzo offers many features under one roof, i.e., its app suffices for all possible needs. Home groceries, food, medicines, pet supplies, health and wellness, gifts, bike rides, pick and drop, laundry delivery, and various other categories/services are provided by Dunzo.

Dunzo works through a data-driven platform where it connects a delivery person to the nearest user. The activity of this person can be tracked throughout the delivery. When there are any purchases to be made, the users can even use the chatbox, send relevant images of the specific product, and communicate accordingly. Dunzo also provides Dunzo cash and other digital payment options. Dunzo uses Artificial Intelligence with its platform to give the users a satisfactory and smooth experience.


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Dunzo - Growth and Revenue

Dunzo reported its revenue from operations to be $6.22 mn (Rs 45.8 crore) during FY21, jumping around 66.5% from $3.73 mn (Rs 27.5 crore), which the company earned in FY20.

The delivery startup from Bangalore reported total revenue of $483K (INR 3.5 crores) in FY19. While the revenue from operations was reported to be $104K (INR 76 lakhs), the company collected revenues worth $372 K(INR. 2.7 crores) from its other income sources.

Furthermore, Dunzo also stated that the firm has witnessed the GMV on its platform surge by nearly 64% to $80.17 mn (Rs 590 crore) in FY21, which was announced to be $48.92 mn (Rs 360 crore) in FY20.

If we move to the expense side, we would see that the employee benefit expenses have taken up a relatively large space for Dunzo. It accounts for around 37.4% of the annual costs incurred. In FY21, these expenses have grown by 24.7% to Rs 91.6 crores.

Dunzo reported a loss of $23.4Million (INR 169.7 crores) in FY19, an increase of 671% compared to a loss of $2.9 Million (INR 21.9 crores) in the previous year (as stated by the documents filed with the Registrar of Companies). The annual losses suffered by Dunzo in FY20 were $45.98 mn (Rs 338.4 crore), which was successfully reduced by 33.3% to $30.67 mn (Rs 225.7 crore) in FY21. Though the cash burn was slowed down, the outstanding losses still stand at $104.36 mn (Rs 768 crores) with an abysmal EBITDA margin of -425.3%.

Initially starting in 2015 on Whatsapp, when the users typed their needs and Dunzo used to deliver the same promptly, to now, when Dunzo is hailed as an all-in-one 24X7 delivery ecosystem to pick and deliver anything and everything within the city, the growth is right in front of us.

The word "Dunzo" has grown from just the name of a startup to a verb in the real world, where people prefer to just dunzo things.  

Here's a glance at the growth highlights of Dunzo:

  • The company is spread across 8 of India's metros
  • Dunzo is backed by none other than the IT giant Google
  • The company also has a bike taxi service in Gurugram
  • Dunzo boasts of a whopping 40X growth in the last 2 years, as reported in March 2021
  • Dunzo Daily has been discovered to be growing at 25% week-on-week
  • Google-backed Dunzo scaled its revenue by 1.6X in FY21 and has prominently reduced its expenses by 43%
  • The company is presently growing 10-15% month-on-month

Dunzo - Funding and Investors

Dunzo has raised a total funding of $368.4 Million in over 16 rounds of funding. Dunzo raised $240 mn from a funding round led by Reliance Retail and a clutch of other existing investors including Alteria, Lightrock, Lightbox, Alteria Capital, and others on January 6, 2022.  Reliance Retail also confirmed that it will own 25.8% stakes with its $200 mn. The previous Series E funding round was of $40 Million that came from Google, LightBox, and others.

The Reliance funding, which was highly anticipated is now quite real. This would further inch the Indian billionaire Mukesh Ambani towards his dreams of building the Reliance super app, as per the reports dated October 21, 2021.

Dunzo's funding details are as follows:

Date Amount Investors Series
November 2016 $1.18 Million Aspada Investment Series A
December 2017 $12.3 Million Google, Blume Ventures, Aspada   Investment Series B
November 2018 $1 Million Alteria Capital Debt
February 2019 $3.1 Million Blume Ventures, Lakshmi Narayanan,   Raintree Family Office, Monika Garware Modi Series C
February 2019 $0.4 Million - Series C
April 2019 $9.4 Million Google, Blume Ventures, Alteria   Capital, Patni Wealth Advisors Corporate Round
May 2019 $0.6 Million Kalpavriksh Fund Venture Round
June 2019 $0.4 Million Belltower Fund Group Ltd Series C
August 2019 $2.8 Million Alteria Capital Debt
October 2019 $45 Million Lightbox Ventures, 3L Capital,   STIC Investment, STIC Ventures and Google Series D
February 2020 $11 Million Alteria Capital Debt
September 2020 $28 Million Google, Lightstone Fund Series E
January 2021 $40 Million Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada, and Alteria Series E
January 6, 2022 $240 Million Reliance Retail, Lightbox, Lightrock, Alteria Capital Venture Round

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Dunzo - Startup Challenges

Like every other startup, Dunzo also faced many hiccups and challenges. The major pain points for the company were an inefficient delivery system, the time taken by the runners to complete the deliveries, website and mobile application management, and major financial losses.

Dunzo - Awards and Achievements

In the Mommy Awards 2021, Dunzo has won awards in all the 3 main categories as the best brand on social media, the brand with the best campaign on social media, and the best post on social media. Furthermore, Dunzo also won the award for the best brand presence on Twitter.

Dunzo - Competitors

The prominent competitors of Dunzo are:

Swiggy Go

Jhutpat

Meratask

Jugnoo

Apart from Meratask in Delhi and Jugnoo in Chandigarh, it also has rivals emerging out of metro cities like Delhi, Pune, and Bengaluru. The logistics industry in India is huge and intense competition is inevitable.

Dunzo - Future Plans

Dunzo has garnered massive popularity in the cities it presently operates in. The company has literally made the lives of people easy and stress-free. In the near future, the company is aiming to strengthen product searches on its app by partnering with different merchants and vendors. The team at Dunzo wants to expand its coverage of physical retail stores on the mobile application. Dunzo is also in the process of expanding its outreach to different tier-two cities.

Dunzo Founder and CEO, Kabeer Biswas spoke at YourStory’s TechSparks 2021, where he mentioned the company's growth plans to deliver essentials to customers in just 15-20 minutes. He also revealed that in the next 24 months Dunzo will be rolling out the daily category across the country to 20 cities, and digitizing the same for the company's TAM of 50 million customers.

Dunzo - FAQs

What is Dunzo used for?

Dunzo is a hyper-local on-demand delivery service in India. It is a delivery company that delivers anything and everything on-demand with minimum delivery charges.

How much does Dunzo cost?

Dunzo approximately charges INR 40 for 4 km, INR 80 for 8 km, and INR 120 for distance greater than 8 km.

What does Dunzo mean?

Dunzo is a slang abbreviation that refers to 'do, over, and finished'.

Who is the CEO of Dunzo?

Kabeer Biswas is the founder and CEO of Dunzo.

How long does Dunzo take to deliver?

The entire delivery cycle approximately takes 35-40 minutes.

Is Dunzo Reliable?

Delivering an exceptional customer experience for its platform's users is Dunzo's main motto. Hundreds of positive reviews speak for Dunzo's reliability.

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