Online Food Delivery and Restaurant locator application, Zomato is rumored to acquire Bangalore-based e-service delivery provider company called Dunzo. The task management application for carrying out tasks is reportedly in talks with Indian food delivery app, Zomato.
According to Moneycontrol’s report, The deal between Zomato and Dunzo is taking place while rival company Swiggy has expanded its service range from food delivery to on-demand groceries and home products services with Swiggy Store. Similarly, to enlarge its services Zomato is planning to acquire the Google-backed Dunzo.
This would not be the first time when Dunzo is rumored to set up a deal with some Indian e-food delivery company. Previously, The Bangalore-based firm was approached by both the rival companies, Swiggy and Zomato.
Competition in Foodtech market has recently expanded beyond the general food game. Over the past few months, Swiggy with the acquisition of Superdaily and launch of SwiggyStore has forayed into a micro-delivery and Hyperlocal delivery firm. To hold up to the competition and to match its competitor’s scale, Zomato is partnering up with Dunzo.
Dunzo is available in six major cities of India such as Bangalore, Gurugram, Pune, Delhi, Chennai, and Hyderabad. The fir also provides the two-wheeler taxi service in Gurugram. With its headquarters in Bangalore, Dunzo processes more two million plus transaction every month.
Given that Jack Ma’s Alibaba Ele.I begin the food delivering service and later included groceries, vegetable, and other household products, it would encourage Zomato to explore more use cases for existing infra a.k.a fleet of a delivery boy.
With the likely possible deal with Dunzo, Zomato would boost up its scale. The Bangalore-based firm has a strong grip in its home town which is also the largest market for Swiggy. It would bolster the operation for Zomato in the city.
Dunzo has raised over $30 million of risk capital from Google, Blume and some other VCs and angels. If Deepinder Goyal’s firm acquires it, they will reach a conservative estimate of $45 – $50 million. Meantime, Zomato has been in talks of more finance and recently sold out UAE business to compete Swiggy on home turf.
The scope of this enormous deal is determined on how Zomato is fit to generate from investors like Alibaba and SoftBank. However, SoftBank has more possibility to invest in Swiggy as the firm is reportedly in talks to acquire UberEats.
After all, Zomato already has a strong amount of traffic, a relevant audience base which generates 30 million plus orders every month, it can also set up its own vertical with less funding.
Dunzo was launched in 2015 by Kabeer Biswas, Mukund Jha, Dalvir Suri, and Ankur Agrawal. It was started on Whatsapp application and has grown to become an application available across the major cities. The firm provides deliveries of products from local stores with its bike taxi services as well.
In 2017, Google made its first direct investment through Dunzo in an Indian startup of $12.3 million. It also generated Rs 3 crore from MakeMyTrip founder Deep Karla.
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