India-based hyperlocal delivery firm Dunzo has raised US$45 million in a round led by new investor Lightbox.
South Korea’s STIC Ventures and US-based 3L Capital also participated in the round, alongside existing investor Google.
The latest round, which brings the company’s valuation between US$180 million and US$200 million, may also see a top up of another US$10 million, The Times of India reported, citing people familiar with the development.
Founded in 2015, Dunzo offers delivery services for a range of products like groceries, food, and medicine through partnerships with mid- to large-sized merchants in India’s major cities of Bengaluru, Delhi, Gurgaon, Pune, Chennai, and Hyderabad.
In addition to its commerce business, Dunzo also operates a bike-hailing service in the national capital region and Hyderabad.
According to the report, Dunzo co-founder and CEO Kabeer Biswas said that the company will use the new funds to further develop its tech platform and scale up its commerce business.
Biswas added that the company’s commerce business currently accounts for 50% of its total volume and could increase in the coming year. “We have seen [commerce] leading to more unplanned purchases on the platform.”
In its segment, Dunzo takes on Swiggy, which is reportedly looking to raise up to US$750 million in a round led by Naspers.
Earlier this year, it started offering on-demand product deliveries with the launch of Swiggy Stores. Available in the Swiggy app, the service delivers products from offline stores across various categories, much like Dunzo’s main vertical.