A Slang worth $300 million.
Dunzo is the modern-day slang for “Done” or “Finished”. Started by serial entrepreneur Kabeer Biswas at the age of 28. A to-do list to execute a task and wrap up on its own was the central idea behind a 1000+ employee company founded by Ankur Agarwal, Dalvir Suri, Kaber Biswas, and Mukund Jha in 2014. It began as a mere WhatsApp group in Bangalore where deliveries were communicated and executed. CEO Kabeer himself
undertook deliveries on a bike. He then hired some volunteers from NGO to carry out deliveries. Dunzo was delivering 70 orders per day during pre-success days in 2015 itself. This Online Customer Service App is valued at $300 million (present-day).
What is Dunzo?
It’s an all-in-one hyperlocal delivery platform with 24*7 available on-demand service. It delivers all kinds of commodities required by the customer at a minimal fee. The brand focuses on being swift, reliable, and resolute. Want to fix the leakage? Have groceries at the doorstep? forgot specs? Want to send some books to friends? Everything can be Dunzoed.
Currently, Dunzo is operational in 7 major cities providing services like:
· Pick up & drop
· Online Ordering
· Grocery, Medicine, Laundry Delivery
· Local couriers
· Bike Taxi
· Online restaurant discovery
“Dunzo plans to operate as the logistics layer of every city” – Dunzo’s Mission Statement.
This online On-demand Delivery platform serves the gap between Consumers and Merchants, by bringing them on a common platform, hence works’s on the model of a two-sided network. Consumers and Merchants being the endpoints of the network.
1. Commission Rate – Dunzo charges a 15% - 30% commission on the partner store for every order placed on their platform.
2. Delivery Charge –
B2B – Generates almost 10% of the total revenue.
B2C – Particularly ranges from Rs. 10 to 60 per order, based on two factors: Distance and Order Value.
3. Services – Charges on services like repairs, home service, etc.
4. Surge/Demand Pricing (Regional Economics) – Revenue is generated via a surge in prices as well, i.e. when demand increases it drives the prices of the product along with it.
5. Miscellaneous Categories – Comes along with miscellaneous pricing for categories of work that aren’t defined, popularly known as #Kuchbhi requests. For Eg: Get my watch from the office, Take a picture of my documents, etc.
Dunzo has a large customer segment, it deals in every segment possible be it children, teenagers, youth, working-class, Old, and retired people. To range, the segment widely ranges from 12-65 year class.
Dunzo wants to automate the tasks performed by people, get everything done at ease without much effort. Dunzo deals in every layer of logistics and supply chain so to ease the process for their customers who do not need to figure out “what to do” in any complications. Dunzo makes it easy to order any product/service in 4 easy steps and takes the whole responsibility of delivering it in due time with utmost responsibility.
Dunzo delivers 2 Lakh+ monthly deliveries with 6000 delivery partners at an average delivery time of 23 minutes. It has 30,000+ registered merchants with 75000 stores and 37,000+ businesses that regularly use Dunzo for their deliveries, with a guarantee of providing delivery in 45 minutes!
Dunzo has doubled its user base from 2.7 to 5.1 Billion in FY 2020 itself. Owing to the pandemic reached gross margin profitability, reducing its EBITDA loss by 68% Y-o-Y. Dunzo has grown 4 times year on year, in terms of revenue. Though, the expenditures have also increased by X2.3 which highlights the Cash Burnout strategy used by most of the startups to drive at higher valuations focusing on customer acquisition.
They are developing and experimenting with “Dark stores” in relation to warehousing so that local suppliers can easily supply whenever needed at minimal costs. Covid-19 has changed the business outlook, because of the surge in online delivery Apps recognition now even at zero marketing costs they were able to grow at 2X speed every month, as now the customers themselves were educated about the delivery platforms, and there wasn’t much need to acquire acquisitions costs.
Date Amount Investors Series
November 2016 $1.18 Million Aspada Investment Series A
December 2017 $12.3 Million Google,
Blume Ventures, Series B
February 2019 $70 Million Alteria Capital Debt
February 2019 $3.1 Million Blume Ventures,
Lakshmi Narayanan, Series C
Raintree Family Office,
Monika Garware Modi
April 2019 $684.2 Million Google, Blume Ventures,
Alteria Capital, Corporate Round
Patni Wealth Advisors
May 2019 $50 Million Kalpavriksh Fund Venture Round
June 2019 $29.9 Million Belltower Fund Group Ltd Series C
August 2019 $2.8 Million Alteria Capital Debt
October 2019 $45 Million Lightbox Ventures,
STIC Investment, STIC 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, Series E
Total funding to Dunzo stands at $950 Million, up to date involving 24 lead investors and $128.4M in 15 rounds of funding.
Dunzo is famous for its marketing style, it uses all the aspects of marketing be it ambush, guerilla, uses paid advertisement, transactional and emotional marketing.
It uses various Bollywood references that are typically embedded in our subconscious minds, that directly hits the mind and generates response!
Memes! The new-age marketing style, Dunzo’s pro at it. Dunzo keeps a check on the current influential trend systems and hits the iron when it’s hot. It all a game of timing, and Dunzo masters it.
Using social media marketing, transactional values and paid advertisements are the keys to getting registrations and branding of the product as it keeps on targetting the potential customers via the algorithms designed by the assigned platform they market on.
Dunzo uses a hyperlocal communication strategy, using the local languages on posters/posts, this is a powerful branding and advertising strategy which creates a feeling that they are an integral part of their customer’s life.
Campaign and consistency in posting regular updates, products, and services are essentials for keeping up with the brand awareness and also makes the social media handle engaging to the customers.
It posts content in mundane, generally themed in and around food, so to drive hunger – whenever looked upon. It also helps in creating brand awareness increasing reliability factors.
Let’s say Dunzo! This is a common practice marking the success of the marketing campaigns they run, for every business to be successful, the best marketing method is to create the brand a common knowledge and name. Potential customers are reached by the publicity of the company using modern-day marketing techniques. Dunzo’s marketing strategies have played a significant role in its success.
$1 Billion Revenues Dream
The Google-backed startup plans to raise another $150 Million this year. The pandemic led to an increase in registrations on the hyperlocal delivery App, with the increasing fondness, Dunzo plans to build an online 7 – eleven. It focuses on digitizing local Kirana stores, both 7 – Eleven and Dunzo aim at making life easier for its customers. Dunzo’s operational model is market-place focused based on cash-burn strategy, their focus isn’t on the number of deliveries but the experience with each delivery! Their expansion plans are more concrete facing a challenging year, they lay strategies to hit a goal of expanding to 20 urban centers by mid of 2023 adding 2 new cities.
Partnering with various companies like Google Pay for integrated easy payment, building systems to optimize user experience, a great logistics maintenance mechanism satisfying all user needs are the basis of such a dream, which is all set to be achieved!
Not only in revenues...
“Soonicorns include Dunzo among the other 35 startups” -Business Standard, BloombergQuint.
…Even in Valuations!! Soonicorns is the landscape that denotes the potential startups to achieve $1 Billion+ Valuation in near future. For a company changing the Indian supply mechanism with great marketing tactics, is it possible to achieve the same? Will everything go smooth according to planned details? Is the company worth it, who required a global pandemic to cross break-even? Will the $1 Billion Revenues dream ever set in place? Or will everything go south?