Dunzo is a hyperlocal supply app which faces competitors from huge names like Swiggy — however in some locations like Bengaluru, the Google-funded startup’s identify is virtually a verb. “I will Dunzo it to you,” is a standard phrase. Based in 2014, it began off as a small WhatsApp group and gained a lot recognition that it needed to be scaled right into a full-fledged enterprise. In January 2021 Dunzo raised $40 million (roughly Rs. 290 crores) from present buyers together with Google, Lightbox, Evolvence and others, after seeing a large surge in utilization through the COVID-19 pandemic. It additionally claims to have grown 40x within the final two years and that it’s at present rising 10-15 % month on month.
Throughout the COVID-19 disaster final 12 months, common order values elevated virtually 4x instances, Dunzo advised Devices 360. The first development charge in perishables items and vegetables and fruit has seen 3x development in comparison with pre-COVID.
Professional opinion: Sanjesh Thakur, Associate, Deloitte India says, “The web meals supply and the restaurant supply section has seen accelerated development as a result of pandemic the place numerous first time customers ordered meals on-line. In case you take a look at the developments globally, the share of orders fulfilled by the net supply firms is rising as increasingly shopper are ordering meals from the comforts of their residence whereas watching their favourite present on Netflix and so on. “
We spoke to CEO and Co-Founding father of Dunzo, Kabeer Biswas to know a bit extra in regards to the firm’s overwhelming success story and its future plans.
1. What was the preliminary conceptualization course of behind Dunzo? When was it that you just lastly determined you wished to begin Dunzo?
I used to be residing in Gurgaon on the time and I had a fairly loopy schedule. Dwelling with all the fashionable facilities, I nonetheless struggled to search out time to do chores and different duties across the residence. I used to usually marvel if I might save time and get a trip on the push of a button, why wasn’t there an answer or a neater means for to me make time for my chores?
Dunzo was primarily a means for me to chop down my very own to-do checklist. After my first startup Hoppr obtained acquired by Hike, I had a while on my fingers to consider what I wished to do subsequent. That path introduced me to Bangalore and my want to search out assist with my chores grew to become that rather more pressing. I figured there have been different individuals like me and so I simply began Whatsapping my buddies on the town and requested them to let me know what they wanted and I might get issues performed. Quickly, my WhatsApp was flooded with requests from buddies, buddies of buddies, and a bunch of strangers who wanted stuff performed round city. These duties included all the pieces from delivering meals and medicines to choosing up flowers and occasion provides. Phrase obtained out about this magical WhatsApp quantity the place you may ship your to-do checklist and get issues performed on the faucet of a button, no questions requested.
In the future I occurred to make a supply to Sahil Kini of Aspada (Lightrock) who had heard about Dunzo from a buddy. He continued to order on Dunzo and we continued to ship. That ultimately led to our first funding at Dunzo. Throughout these days I additionally met my co-founder, Dalvir Suri. Our two-member group expanded once more when Mukund Jha (CTO) and Ankur Aggarwal joined Dunzo. Because the variety of requests scaled our must scale the product additionally grew to become essential. After a sequence of rejections from the VC world, we (Dunzo) secured an funding from Google, its first funding within the Indian startup ecosystem I consider.
For us, funding was the result of getting a product that buyers had been in a position to make use of of their on a regular basis life. It was fixing for an actual want. It wasn’t about getting the cash first after which having an incredible concept. We tried and examined all the pieces earlier than we obtained any type of funding and I feel that has helped us to create a sustainable journey.
2. What’s your development charge been like final 12 months?
Dunzo has grown 40x within the final two years, working at two million month-to-month orders and rising 10-15 % month on month. We consider that constructing effectivity throughout the provision chain and constantly driving an distinctive expertise for our prospects has contributed to our development and journey. At this level we now have one of many quickest supply turnaround instances on the earth, averaging at 28 minutes at underneath a greenback.
As we map our 2021 technique rooted in a 12 months of sustainable development, and pushing for profitability throughout our fastest-growing cities akin to Mumbai, Chennai, and Pune. With a GMV (gross merchandise worth) development of 2X over the previous 12 months, we at the moment are a ~$100 million annualized GMV enterprise. This development in 2020 stems from sturdy natural consumer demand and gross margin profitability.
3. Had been there any operational challenges (or some other challenges) that you just confronted when beginning Dunzo?
Logistics is among the best challenges in India and for a commerce/logistics firm, constructing a powerful provide chain and creating adequate demand is the largest hurdle. It is a hen and egg downside that each hyperlocal supply platform is attempting to unravel. Finally, the thought is to ship something on the most effective value and time with out compromising the standard of expertise. As an organization, we at Dunzo need to be certain that our three stakeholders – the service provider, the accomplice, and the consumer, have equally distinctive experiences. Working to unravel for the service provider results in a neater course of for the supply accomplice, and eventually creates a profitable expertise for the consumer.
4. Is there any explicit incident that’s monumental in Dunzo’s journey?
Dunzo’s mission resonated stronger than ever in 2020. Now we have been amazed by all the pieces retailers and customers have began to rely on the platform for. We really consider we’re writing a playbook for a way hyperlocal companies might be constructed with sustainable unit economics and capital accountability. As a group, we’re extra centered than ever to allow native retailers to get nearer to their customers and stay operational throughout these tough instances whereas all the time doing proper by the shopper.
2020 had its ups and downs however the sense of accomplishment we as a group really feel in having the ability to do our half for native economies – whether or not it’s native companies coming on-line for the primary time, supply companions being the only incomes members of their households, or the aged couple that may entry their metropolis with out dependencies – has been the driving power for our mission in 2021. We need to use these learnings to drive the following wave of development for the service provider and gig economic system throughout the highest 10 cities in India.
5. May you assist give a way of how far Dunzo has come? From when it started to the place it’s now.
With any enterprise that is getting down to create a brand new market or trade, it is vital to consider driving long-term and sustainable development. Till March 2018, we had negligible advertising and marketing and operational spends. We had been a group of 40 serving round 60,000 month-to-month transactions again in 2018. To attain transactions within the hundreds of thousands, which we’re at right now, we wanted to increase into new cities, construct a gentle service provider market, safe a continuing stream of provide (supply companions), purchase new customers, and construct know-how that would drive and sustain with the dimensions, in every of the 300 micro-markets we’re current in.
The opposite problem is that companies in India behave otherwise relying on the pin code they’re current in. We, subsequently, must customized design the service to cater to every geo’s demand. So launching metropolis after metropolis, with out addressing profitability at a micro-market degree, can burn extra within the long-term. The influence of the preliminary investments is changing into extra seen month on month.
Now we have scaled from 600 retailers in March 2019 to 11,000 retailers in February 2021. 80 % of all commerce transactions on our platform are from our partnered retailers, on which we make commissions on each order. Going ahead, we need to construct an unparalleled buyer expertise that’s irresistible in nature and solves actual use instances in commerce, courier, and commute.
6. What was it like crusing by the COVID-19 disaster? Did you see a fall in enterprise or an sudden surge? How did you take care of it?
The primary and most vital motion we took was to make sure the security of our group, our companions, and our retailers. Solely by guaranteeing their wellbeing, would we now have managed to train precautionary measures for customers. Conserving that belief and safeguarding companions throughout these unsure instances was one among our key initiatives. We rolled out preventive and proactive security measures for Dunzo companions very early on. This included security gear, precautionary checks, and a brand new insurance coverage coverage that particularly covers them for coronavirus-related bills and assured pay in case they should be quarantined.
We additionally launched ‘No Contact Supply’ for companions and customers in addition to order queuing at service provider shops to forestall crowding and keep social distancing. To thank and recognize our companions, we launched a tipping characteristic on the app in a file period of time, a characteristic that customers have been generously utilizing. We additionally obtained the chance to work with a number of community-driven initiatives akin to Caremongers India, properties for the aged, and houses for youngsters by procuring necessities for the underserved elements of the neighborhood who might not have entry to smartphones or different technological sources. These had been a few of the main steps we took to take management of the scenario and make sure the security and wellbeing of our neighborhood.
As a result of evolving circumstances, numbers modified on daily basis in demand and provide, nevertheless, we now have seen a major enhance within the common order values, virtually 4x to be extra exact. The first development charge in perishables items and vegetables and fruit has seen 3x development in comparison with pre-COVID. The share of consumable items on the platform has additionally doubled and we will be increasing our catalogue to cater to the demand.
7. Any recommendation for younger Indian entrepreneurs on the market?
Nothing price doing is straightforward. That is what Karthik Reddy of Blume Ventures advised me within the early days of Dunzo and it has actually been the essence of our journey.
8. What are the massive plans for the longer term?
India has 600 million month-to-month commerce transactions, 90 % of that are nonetheless offline. At Dunzo, we purpose to digitize the vast majority of offline transactions which might be occurring regionally and driving commerce for the micro-economy. By doing so, we need to allow native, offline retailers to be part of the digital market and have the ability to face up to the stress from massive e-commerce firms.
9. What’s the worker energy? Is Dunzo hiring at present?
We’re at about 900 workers throughout eight cities. We’re all the time in search of hungry, curious, and passionate individuals to hitch our mission.