- Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)-backed Indian delivery start-up Dunzo Digital Private Ltd, aims to double its capital to extend its presence and become a $1 billion revenue business in the next two years, Bloomberg reports.
- The company intends to capitalize on the rising Internet usage and growing smartphone user base triggered by the pandemic-induced e-commerce boom.
- The Dunzo app, connecting low-cost couriers to individual merchants, gained popularity with its fast delivery of items, ranging from groceries to parcels in traffic-congested cities. The Bengaluru firm has raked in $140 million to date and aims to raise another $150 million in 2021.
- Dunzo is currently operating in eight Indian cities and aims to expand across two more cities in 2021, reaching 20 cities by mid-2023. It also launched 15-minute deliveries for a range of 2,000 commonly-sought-after items.
- It was founded in 2014, started as a WhatsApp service before becoming an app charging $6 per order.
- Dunzo doubled its annual sales in 2020. The company expected the same growth trajectory for 2021. Dunzo’s biggest operation in Bengaluru is reportedly breaking even.
- However, Dunzo is burning up to $2.5 million a month, and it expects to become profitable in two to two and a half years.
- The company plans to scale up by expanding into other Asian markets in 2023.
- As per Jefferies, the pandemic is expected to drive web-based retail.
- Price action: GOOG shares traded higher by 0.55% at $2,277.80 on the last check Friday.
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