Global search engine giant Google has made its first direct investment in an Indian startup, picking up a minority stake in Bengaluru-based hyper-local concierge and delivery startup Dunzo.
The investment is part of Google’s Next Billion Users (NBU) push and will see the company lead a $10-12 million round, where existing backers Blume Ventures and Aspada have also participated, according to two sources briefed on the matter.
Dunzo CEO Kabeer Biswas confirmed the deal, but declined to comment on the amount of the transaction.
The startup, which is present only in Bengaluru right now, plans to expand to other cities across India. “We want to expand to top 5-6 cities by end of 2018 and scale up from 1 lakh transactions a month right now to 1 lakh transactions a day,”Said Biswas to a business daily.
The above development was first reported in Economic Times.
Earlier dunzo has secured $1.18 million in its Series A funding round in November 2016 from Aspada Investment Advisors.
Founded in 2015 by Ankur Aggarwal, Dalvir Suri, Mukund Jha and Biswas, Dunzo allows users to create a to-do list and completes the tasks for you. Currently available in Bengaluru and Pune, the Dunzo app allows users to create different tasks in their to-do list, track the progress of the tasks, chat with their team members about their tasks and includes a one-tap payment method. Dunzo lets users finish tasks like going to the grocery store, making plans, and fixing something at home.
The startup has over 1350 riders active for completing tasks and claims to have logistically broken even in Bengaluru, saying that delivery charges cover the logistics costs per delivery. It has also started a serious monetisation push over the last couple of quarters, tying up with merchants selling electronics, medicines and groceries and charging a commission.