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Dunzo’s Business Model, Case Study, Funding and Revenue Model

Dunzo's Business Model

What Is Dunzo?

Basically Dunzo is a hyperlocal delivery business where they deliver anything what their customer want at their place.

Started in the year 2014 Dunzo has their headquarter in Banglore and currently, their operations are life in Banglore, Hyderabad, Chennai, Pune, Delhi, and Gurugram.

Dunzo’s aim to do all the to do list work that are important but you don’t like do them so that you can save your time for other important work.

You can do many different works with Dunzo like you can order groceries, fruits and vegetables, medicines, or if you want something from any specific store.

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Also if you have forgotten your charge in your home, or if forget your keys, or if you want to do the photocopies of any important documents so they will do all the work for you and deliver to you or any other specific place

And Dunzo is the first Indian startup on which Google has invested directly, as Google participated in its series B round.

But before that they have faced huge problems getting funding so we will discuss each and everything in detail later in this article so be with me for a few minutes.

So before talking about Dunzo’s business model and revenue let’s talk a little about the story of Kabeer Biswas CEO of Dunzo which was very interesting and motivational.

Story of Kabeer Biswas

So Kabeer Biswas has done engineering in Computer science after that he started helping his father in his plastic business.

After that did MBA and worked with Airtel for quite long time in their sales and customer service department.

And then he thought of starting something of his own, which was acquired by Hike after some time.

And then he shifts to Banglore started thinking about a new idea, so here let’s talk about the idea formation of Dunzo.

Dunzo’s Idea Formation

So when he was in Gurugram there are a lot of small works which don’t like to do but he had to do those.

And at that time he thought about how good it was if there were someone who complete his all those works.

So when he shifted to Bangalore he thought let’s give this idea a change to complete the to do list of people and if the idea will work he will scale it.

But he did not have a huge budget to build a team build complicated mobile application or website so started in his own way.

Great Idea Low Budget

He made a WhatsApp group and add all his friends and known people and said them all the task that you have to do but you don’t want to do, so write those tasks here in the group and I will do those tasks for you.

So this was just a testing phase and then gradually people were started writing the tasks in the group and he started completing the tasks.

And gradually many other people started joining the groups and started posting their works in the group.

He started getting busy as lots of work started coming to him so he hired some part-time workers or freelancers.

And for a few months, he just doing the same work to understand the real problem of the people.

So he did that for almost one year understand the problem, and the main advantage for him is that he was in Banglore.

And if you not live in Bangalore you still must heard about the traffic problem in Bangalore.

So even for a small work if they go out, lot’s of time get wasted so the place was really perfect for him.

Even the early investor of the company was met with the help of their service and as they like their services very much it was easy for them to trust them.

And then while working on this Kabeer met his co-founder’s who are also running the same kind of services and then they thought to merge the things and run together.

Problem Faced By Dunzo

So now everything is going great as they are getting huge number’s of and also their customers are loving their services.

And they are handling all the supply chain activities on their own which a very tough task.

But most of the startups do the main task and rest of the work they outsource which make their task easy.

And logistics is the most important and tough part as whenever you expand in any new city it’s very hard to set up your own logistic part and they want to provide great service that’s why they are handling everything on their own.

As this was very tough and need huge budget but they are not getting their next funding after their series A round.

As investors had already invested in many hyperlocal delivery services and they are still not profitable so that’s why they are not investing in other hyperlocal startups.

So more than 80 investors refuse to invest in his startup rather many different startups working in the same vertical offer for the acquisition but they want to build a huge one so they refused.

Dunzo’s Struggle Worked

So after their huge struggle finally in December 2017 Google participated in their series B round and invested $12.3 million.

And if Google invested in a startup means they definitely have some great potential as Google do their well analysis before investing.

Also in that particular segment, all the other big investors have invested in that segment but Google still hasn’t and Google thought this one is the best for them.

Also after the investment Dunzo started expanding itself in many different cities and also they raised their series C round of 1.3 million.

And after their series C round their their valuation is now of $30 million.

Dunzo’s Business Model and Working Model

So basically Dunzo’s business model is that they solve the daily problems of their customer.

They simply save the time of its customer and in this fast moving world time is much more important than money.

So the most important thing in the Dunzo’s business model is their application which do the lot of complicated work very quickly and easily.

It is the mobile application which simply decide which task they have to assign to which Dunzo partner.

Some time they get some complicated works which need a experienced Dunzo partner as they don’t to ruin the customer experience.

So Application run the algorithm and assign the work to the Dunzo partner accordingly.

And another thing which makes the customer experience great is that they focus on chats, means if their is a order to buy and drop that so first they take the pic send to the customer do the verification and then they drop the product.

Also if any Dunzo partner stop somewhere for quite long then the app automatically send a notification to the partner and if not got any reply then there is a human intervention.

The next great help that the app does is if there is a high demand in a particular area but fewer partners they simply increase the incentive in that particular area so partners come to that place and can earn more.

Dunzo’s Revenue Model

They earn money in many different ways like for each delivery they charge some amount depending upon Kilometers.

Second they also charge from the business listed in their platform to keep them in the top.

Conclusion

So in this Dunzo’s business model you must have learnt many thing which motivate and inspired you to build something amazing.

And if you have any questions regarding Dunzo’s business model you feel free to ask in the comment section

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