Bengaluru-based hyperlocal services provider Dunzo recently announced that it has raised $11mn in debt funding round from Alteria Capital. With the latest fund infusion, Dunzo is seeking to scale up its operations in the locations where the company is profitable.
Kabeer Biswas, CEO, and Co-Founder of Dunzo said that the debt funding will help the company to feed the growth in these cities while having a significantly higher return on investment.
Highlighting the importance of profitability for the 5-year-old startup, Biswas said, “Profitability has always been the barometer of success and we’re seeing it manifest across several of our micro-markets,” He added that from the initial stage Dunzo has always focused on building a sustainable business model.
Biswas informed that the startup has already turned profitable in cities like Bengaluru and Pune and is aiming towards building the most efficient logistics solution. “With the changing demands of users in metros, the company is also changing its strategy accordingly,” said Biswas.
Earlier, Dunzo had raised $45mn in Series D funding round in October last year. The funding round witnessed participation from Lightbox Ventures, Google, 3L Capital, and STIC Investment. So far, the company has raised a total sum of $83.7mn from investors including Blume Ventures and Deep Kalra, Co-Founder of Yatra.
Dunzo was founded by Dalvir Suri, Mukund Jha, Kabeer Biswas and Ankur Aggarwal in 2015, Dunzo is a hyperlocal delivery service provider. It provides door-to-door courier services and on-demand deliveries of non-essential items. It partners with vendors like grocery shops to facilitate the delivery of products.
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