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Getting it Dun! How Dunzo made life easy during COVID-19 and boomed as a result

Dunzo is a concierge service app that operates in the hyperlocal delivery sector. While many companies are struggling to make ends meet, COVID-19 was unintentionally a boon to Dunzo’s business.

If you hadn’t heard of Dunzo-ing before, after the lockdown you definitely must have. A hyperlocal concierge app, Dunzo has been a saving grace for a whole lot of people after the country was clamped under a lockdown. 

From delivering essentials to saving us the trouble of travelling to the supermarket in the middle of a pandemic, Dunzo has found its place in becoming a household name and rightly so. 

While many companies are struggling to make ends meet, COVID-19 was unintentionally a boon to Dunzo’s business. Since March, the company has partnered with giants like Britannia, PepsiCo, Chai Point, Google Pay to name a few.

Dunzo's Founder
(From Left) Dalvir Suri, Mukund Jha, Kabeer Biswas, Ankur Aggarwal

According to an interview in Inc 42, the company saw a 33 per cent growth in its weekly orders alone and the average ticket price has doubled. (XXXXXX NUMBERS INCLUDE)

Dunzo’s success, however, was not overnight. It certainly wasn’t just coincidence. 

Humble beginnings 

When co-founders Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha decided to start Dunzo in 2014, little did they know that it would go on to become a household name for urban India. 

 

Now, more than half a decade, funding from Google and a massive customer base later, the company’s story is truly something to learn from.

Bengaluru based Dunzo is currently operational in Delhi, Gurgaon, Pune, Chennai, Jaipur, Mumbai and Hyderabad apart from its home base used to be a tiny on-demand concierge service operated via a Whatsapp group. 

The first response was ridiculously strong but growing in the hyperlocal sector was still an uphill task. Its rivals UrbanClap and HouseJoy were backed by millions in venture funding at the time but Dunzo ran quite the lean operation.

Its success lay in its cult-like following and a word of mouth goodwill that marketing gimmicks only dream of buying. While many startups that deal in the sector wait for app downloads, Dunzo just began with the resources at hand. “Hindsight is always 2020,” Dunzo said in an interview with The Electronics.

“You have to be patient and ride the highs and lows and adapt quickly in a very dynamic environment. You might not always be able to go back but you can learn and build for the future,” they said.

Hyperlocal is hard, but it is the execution that counts 

In December 2017, Dunzo raised $12.3 million in Series B funding, becoming the first startup in India with direct investment from Google.  The team had already raised about $2.5 million in funding from Blume Ventures and Aspada Investments before this.

Dunzo Hyperlocal

The app makes millions of deliveries per month. It has managed to rope in thousands of store partners as well as ensure smooth logistics. These are some of the biggest challenges that hyperlocal services face in India. 

Because Dunzo built itself from the ground up, solving problems along the way and adding more and more features as they went forward, its execution went on to be lean and strong. 

“At Dunzo, we’ve always fought for the best customer experience even if that meant taking a hit on the revenue,” Dunzo told us. They consider their “Users, Merchants, and Delivery Partners”.

“As long as you live by high customer-centricity, are fearless in chasing your business goals, and respect the ecosystem that you operate in, there will definitely be some impact that you create along the way,” they said.

Dunzo has most recently launched a bike taxi service in its plethora of task assists. Although not a full-fledged service yet, it is definitely dipping its toes into a market that already has Rapido’s swinging operations. However, considering their story so far, it might just be another hit. 

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