Dunzo is an Indian company associated with the online delivery of consumable goods. Such as groceries, fruits, veggies, meat, medicines, etc. You will find detailed info in the Dunzo’s Business Model. The year 2023 has turned out to be a purple patch for Dunzo. Why? You may ask. Because of its recent funding round i.e. in April 2023. Now, it is backed by two powerful investors of the world- Reliance Industries and Google. Apparently, they became the major shareholders too! Go through this write-up to know detailed info on Dunzo valuation, shareholders, and its funding rounds.
Shareholders Breakdown
As per the latest information available, Dunzo was valued at $775 million (Rs.6,365 crores). Also, it raised $457.6 million through 19 funding rounds (As per the data published in Crunchbase). The company’s largest investors include Reliance Retail Ventures, Google, Lightbox, etc. Let’s look at the latest shareholding structure of Dunzo-
| Shareholder’s Name | Percentage of Shares Owned |
| Reliance Retail Ventures | 25.86% |
| 18.74% | |
| Lightbox | 11.81% |
| ESOP (Employee Stock Ownership Plan) | 8.95% |
| Blume Ventures | 4.24% |
| Kabeer Biswas | 3.61% |
| 3L Capital | 2.82% |
| Alteria Capital | 1.38% |
| STIC Ventures | 4.44% |
| Lightrock | 3.86% |
| Aspada | 4.9% |
| Others | 9.39% |
Fundings so far & Valuation
So far, Dunzo has raised a whopping amount of $457.6 million through 19 funding rounds. However, you must not misunderstand it as the total funding recieved from the VCs. Dunzo has gone through over 28 funding rounds till now. More than 36 investors are involved in the funding rounds of Dunzo. And out of them 12 are the lead investors. Dunzo held its latest funding round on 6th April 2023. It raised money through convertible note round. The two largest and most recent investors of this online customer delivery service are- Google and Reliance Industries. The following table will provide you with information about the other potential investors of Dunzo.
Let’s look at the latest fundings rounds of Dunzo–
| Venture Capitalist | Funding Amount | Date |
| BlackSoil | $500 million (Rs.4,123 crores) | Nov 30, 2022 |
| Reliance Retail | $240 million (Rs.1,979 crores) | Jan 6, 2022 |
| Krishtal Advisors, Ranjan Patwardhan | $8 million (Rs.65 crores) | Mar 30, 2021 |
| Alteria Capital, Google | $12 million (Rs.98 crores) | Jan 19, 2021 |
| Google, Lightrock | $28 million (Rs.230 crores) | Sep 1, 2020 |
| Alteria Capital | $11 million (Rs.90 crores) | Feb 19, 2020 |
| Lightbox | $45 million (Rs.371 crores) | Oct 4, 2019 |
| Alteria Capital | $2.8 million (Rs.23 crores) | Aug 16, 2019 |
Thus, Dunzo valuation as per the latest report is $775 million (Rs.6,365 crores).
Is Dunzo profitable?
Now, the obvious question that you may ask is about the company’s profitability. “Is Dunzo profitable in spite of raising enormous funds and with a valuation of $775 million?” You will get the answer after looking at the following data–
| Dunzo’s Financials | Amount (in crores) |
| Market Valuation | Rs.6,365 crores ($775 million) |
| Revenue Earned | Rs.54.3 crore |
| Expenses | Rs.532 crore |
| Profit/Loss | Loss of Rs.464 crore |
Now, you must have got a clear answer to the above question. So the answer is a “No.” Dunzo was not profitable in the fiscal year 2022. Although it earned good revenue from its numerous revenue sources. However, its expenses exceeded the threshold due to which it drowned in humongous losses.
Revenue Earned
Dunzo earned revenue from the following sources-
| Revenue Sources | Amount Earned |
| Online Platform Services | Rs.50.6 crore |
| Sale of Products | Rs.2.1 crore |
| Warehousing Fee | Rs.1.6 crore |
Expenses
Now look at the following expenses that led to deep losses for the company “Dunzo.”
| Expenses | Amount |
| Employee Benefit Expense | Rs.138.3 crore |
| Advertising & Marketing expenses | Rs.64.4 crore |
| Delivery Charges | Rs.134 crore |
| IT & Communication Costs | Rs.52 crore |
| Outsourced Support Cost | Rs.49.7 crore |
| Legal & Professional Fees | Rs.14.8 crore |
| Other Operating and Admin Expenses | Rs.78.8 crore |
Final Thoughts
Dunzo is an online hyperlocal-on-demand delivery service that connects a delivery person to the nearest user through a data-driven platform. It is raising funds and increasing its market valuation to boost its expansion plans. The company has rapidly grown its user base since its launch in July 2014 and has become one of the leading players in India’s online consumer delivery services. However, in FY22 the losses soared to Rs.464 crores. According to the officials of the company, it invested heavily in expenses like advertisements, IT costs, and delivery charges. Eventually, Dunzo is anticipating higher returns in the future!
