Earlier this year, Dunzo, backed by Lightbox and Blume Ventures,raised $40 million as part of its Series E funding. The company is looking to raise as much as $150 million to extend its reach
Tata Digital has been on a shopping spree and swiftly adding names like CureFit and BigBasket to its cart. Next in line is Google-backed hyperlocal delivery platform Dunzo. The unit of Tata Sons has reportedly begun talks with Dunzo for a controlling stake.
The potential deal may value the company at $150-200 million, sources in the know told Livemint. Earlier this year, the company, backed by Lightbox and Blume Ventures, raised $40 million as part of its Series E funding. The company is looking to raise as much as $150 million to extend its reach. It aims to become a $1-billion revenue business in the next two years.
This development comes after Tata Digital said on Monday that it will invest $75 million in fitness startup Curefit, days after it completed its acquisition of online grocer BigBasket. It is also said to be considering acquiring online drug marketplace 1mg. The Tata Sons unit is building a super-app for consumer-facing businesses.
Launched by Kabeer Biswas, Ankur Agarwal, Dalvir Suri and Mukund Jha in 2015, Dunzo was valued at $220 million in June 2020. The company's gross merchandise value (GMV) doubled last year amid the pandemic. Dunzo is now a $100 million annualised GMV business.
Alteria Capital pumped $11 million in venture debt in February 2020. Google, Lightbox, growth equity firm 3L Capital, South Korea's STIC Investment and STIC Ventures invested $45 million in Dunzo in October 2019.
The delivery company's revenue from operations increased fourfold to Rs 77 crore for the year ended March 31, 2020.
A Dunzo spokesperson told the daily that they don't comment on speculative news. Tata Digital did not respond to queries.