Dunzo, operating in eight major cities in India, also one of the first startups of the country to be funded by google is a hyperlocal delivery service based in Bengaluru. Currently in major localities of Bengaluru, Delhi, Gurugram, Pune, Chennai, Jaipur, Mumbai and Hyderabad, Dunzo also operates a bike taxi service in Gurugram. The business model is simple; Dunzo liaises as an all item delivery service from restaurants to Kirana or local grocery stores, to say even electronic shops. Need those two bulbs in the house replaced and do not have time to go out, Dunzo it and it will be at your doorstep, like Pizza from Dominoes. Speaking off, yes it delivers food as well, in the same Zomato-Swiggy liaising with local restaurants and cloud kitchen style, delivering food ordered through the mobile app. As evident, when it comes to operating in the local online space, or connecting the offline to the online, there’s not much that they don’t do. To get some item from a particular store or not anything in particular, and can’t step out, all you have to do is Dunzo it, as to Dunzo it has become a verb.
Initially started as sort of a local craiglist based out of whatsapp groups, today Dunzo can be best described as services like that of Swiggy, UrbanClap, Netmeds and Amazon Fresh etc. all rolled into one. If these services already exist, how did Dunzo survive and flourish you ask? Well, the need fulfillment that Dunzo now did, was quite different. As we know necessity is the mother of invention, founder Kabeer Bishwas, initially thought of how to save time, how to not have to do mundane tasks in the hyperbusy lives of metros in the country, starting typically from Bengaluru, where getting a work done in the physical space navigating through its traffic is a nightmare that needs no further introduction. What if someone could do the said mundane task for you? What if you didn’t have to fret over getting a milkman deliver fresh milk to your new location, that you have been meaning to take care of since a long time now? In layman terms, it saves you time, yes it brings the stuff to you, does soem work for you, on a paid basis, but what it really does it saves you time. Also, convenience and time saving goes hand-i n-hand with Dunzo’s value proposition.
The company is burning cash to keep customers, and its usage has been critical ever since the Covid-19 pandemic hit, and in a way the pandemic has for all reasons and purposes accelerated growth for this fledging startup. The company uses a marketing model unlike any other, almost solely online too or rather in social media, it has one of the lowest marketing budgets and yet the conversion rate resulting in its expansion is high. Unsurprisingly, going by the Indian local marketplace, Dunzo was making as low as INR 50 per order in 2017, but the financial aspects of operating even on that scale are mind-boggling. Dunzo has managed to survive and flourish despite what they make per order only baucause they have diversified the products that they deliver, or the services that they provide, not focusing solely on one particular vertical. Even larger players like Swiggy has entered this space to some extent, going beyond delivering food to include groceries, medicines etc., other big or established players like UrbanClap also do what Dunzo is doing. However, despite entering a crowded space they ahev managed to make a name for themselves or rather make a verb out of their name. Dunzo had a first-round investment of US$650k in 2016 from Blume Ventures, Aspada Ventures, accompanied by other investors including, Rajan Anandan, MD of Google India and Sandipan Chattopaday. Google led its first ever investment into a Indian startup, of US$12 million into Dunzo in December 2017. In 2019, it raised close to INR 35 crores in a series C1. By collaborating with companies like PepsiCo and Google Pay for delivery of their products, groceries and medicines, services like bike pool and pick up and drop, during the Covid19 pandemic induced locakdown in India recently, the high growth startup is growing like no other. Read more about its business model here: https://bit.ly/3l7IJ6C