Reliance Retail buys 25.8% stake in Dunzo for $200 million
New Delhi, Jan 6: Reliance Retail has bought a 25.8 per cent stake in Dunzo, India's leading quick commerce player, for USD 200 million (around Rs 1,488 crore) as it looks to expand its presence in online grocery delivery business.
Dunzo has raised USD 240 million (about Rs 1,787 crore) in its latest funding round that was led by Reliance Retail Ventures Ltd(RRVL) - the retail arm of Reliance Industries, the two firms said in a statement.
Existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in the funding round.
"With an investment of USD 200 million, Reliance Retail will own 25.8 per cent stake," the statement said.
In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will enable hyperlocal logistics for the retail stores operated by RRVL, further adding onto Reliance Retail's omni-channel capabilities.
Dunzo will also facilitate last mile deliveries for JioMart's merchant network.
The capital will be used to further Dunzo's vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities, the statement said.
We are seeing a shift in consumption patterns to online and have been highly impressed with how Dunzo has disrupted the space. Dunzo is the pioneer of Quick Commerce in India and we want to support them in furthering their ambitions of becoming a prominent local commerce enabler in the country, RRVL Director Isha Ambani said.
She added that through the partnership with Dunzo, the company will be able to provide increased convenience to Reliance Retail's consumers and differentiated customer experience through rapid delivery of products from Reliance Retail stores.
Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through JioMart, she said.
Dunzo is a leading player in the quick commerce category which has an addressable market opportunity of over USD 50 billion.
Currently, Dunzo is available across seven metro cities in India and the additional capital will be used to expand the quick commerce business to 15 cities, the statement said.
Dunzo launched its instant delivery model Dunzo Daily' in Bengaluru earlier this year, which is seeing over 20 per cent week-on- week growth.
The Dunzo Daily model delivers daily and weekly essentials within 15-20 minutes, with a focus on providing high quality fruits and vegetables.
While traditional e-commerce deliveries take a day or longer, quick commerce (or q-commerce)
enables customers to get small quantities of goods to customers in a shorter period of time.
According to a RedSeer report, the quick commerce sector in India is expected to grow to USD 5 billion by 2025 from the current USD 0.3 billion.
The report said quick commerce is growing in India on the back of trends like a shift in consumer behaviour, entry of big players like BigBasket and Blinkit , and rise of instant delivery platforms.
Last month, food delivery platform Swiggy announced an investment of USD 700 million (about Rs 5,250 crore) in its express grocery delivery service, Instamart.
Previously, Ola had also started piloting a quick delivery service for items like groceries in Bengaluru.
RRVL has been on an aggressive acquisition spree to consolidate its position in the Indian market, while bolstering its digital play to tap into the burgeoning demand for e-commerce services in the country.
In November last year, RRVL acquired the retail lingerie businesses under the amante' umbrella brand from MAS Brands, a wholly-owned subsidiary of Sri Lanka-based MAS Holdings, for an undisclosed amount.
In October, RRVL had acquired a 52 per cent stake in veteran couturier Ritu Kumar's firm Ritika Pvt Ltd for an undisclosed amount, while Reliance Brands Ltd (RBL) has announced it would pick a 40 per cent minority stake in fashion designer Manish Malhotra's MM Styles Pvt Ltd.
In September, RRVL had acquired the control of search & discovery platform Just Dial for a consideration of Rs 3,497 crore.
Last month, RBL and Indian couturier Anamika Khanna agreed to a 60:40 joint venture for owning and developing fashion brand AK-OK.
It also bought a minority stake in Actoserba Active Wholesale, which owns and operates online lingerie store Zivame, last year.
RRVL, a subsidiary of RIL, is the holding company of all the retail companies of the Group. It reported a consolidated turnover of Rs 1,57,629 crore and a net profit of Rs 5,481 crore for the year ended March 31, 2021.
In 2020, Reliance Industries had raised Rs 47,265 crore by selling around 10 per cent stake in RRVL. It had raised funds from global private equity funds which included - Silver Lake Partners, KKR, GIC, TPG and General Atlantic, as well as sovereign wealth funds Mubadala, ADIA and PIF.
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India's neighbours wanted to break up Assam but Modi govt shattered their dreams: Fadnavis
Dibrugarh/Jorhat (PTI): Maharashtra Chief Minister Devendra Fadnavis on Tuesday claimed India's neighbours wanted to "break up" Assam by taking advantage of the unrest here earlier, but their "dreams were shattered" as the Narendra Modi government brought peace to the region.
Militancy has come to an end, and 92 per cent of the assurances made in the peace agreements with various groups have already been implemented, he told a poll rally.
Fadnavis maintained that the BJP-led government in Assam has not only ensured the state's development but also protected its identity.
He accused the Congress of having neglected the state and the northeastern region by adopting a "step-motherly attitude" towards them, while Modi has put the region at the centre of development.
Addressing a rally in support of BJP's Dibrugarh candidate Prasanta Phukan, Fadnavis said, "Due to the unrest in the state earlier, neighbouring countries thought they would break Assam someday. But their dreams were shattered by Modi ji, and Assam is progressing fast today."
Crediting the BJP government for bringing the militant groups to the mainstream, the Maharashtra chief minister said not only were peace accords signed with them, but 92 per cent of the assurances made have been implemented.
"Work is on for implementing the remaining eight per cent of promises also," he added.
Highlighting the various welfare measures of the state government, Fadnavis said special emphasis was being given on women's empowerment in line with the Centre's thrust on it.
"Women have benefited the most under Modiji's government. It will be 'Mahila raaj' from 2029 when 33 per cent reservation is implemented in Parliament and state Assemblies," he added.
Speaking at another rally in support of the BJP's Jorhat candidate Hitendra Nath Goswami earlier, the Maharashtra chief minister alleged that infiltration was at its peak in Assam under Congress governments.
"People had to launch a movement against it, and scores were martyred. But the influx did not stop, and the state was burning. It was staring at a full demographic change."
"But the situation changed when Modi came to power. Infiltration has been stopped, and almost all militant groups in the state are returning to the mainstream," he claimed.
Fadnavis claimed that the state's demography would have changed and Assam's history would have been rewritten under the Congress rule.
"But the Modi government works not just for development, but also protects the state's identity, culture, history, and tradition," he said.
He told the gathering that the BJP-led government has ensured massive infrastructure development for the state.
Mentioning the Tata Group's semiconductor unit at Jagiroad, Fadnavis said, "It is a gift of Modi ji to Assam. It will place the state on the global map."
He added that countries with the ability to manufacture semiconductors will be global leaders in the future, and India has joined the elite ranks of a handful of nations.
Taking a dig at the Congress, Fadnavis alleged it had always adopted a "step-motherly attitude" towards the northeast, due to which the region did not see much development, and was embroiled in unrest.
He also criticised the opposition party for its "anti-national stance" during the West Asia crisis, claiming it was trying to create discontentment among the people by raising false doubts over the availability of LPG and fuel.
"We had also been in the opposition, but we had never acted in such a shameful manner," he said.
Taking a dig at state Congress president Gaurav Gogoi, who is also the opposition party's candidate in Jorhat, Fadnavis said, "Those in Lok Sabha should remain there. BJP will return to power, and he will have no work here."
Gogoi is also the opposition party's deputy leader in the Lok Sabha.
