Zaomto is looking to acquire hyperlocal delivery startup Dunzo, according to a report coming in from Money Control. The acquisition’s size and expected completion date could not be ascertained.
The acquisition could well be a part of Zoamto’s strategy to take on rival Swiggy, which has grown exponentially over the past couple of years. Backed by heavy investment from some of the biggest investors, Swiggy has gained sizeable market share in comparison to its much older rival in a number of crucial cities.
More recently, Swiggy came up with the concept of ‘Swiggy Stores’ which delivers household items like grocery, flowers and meat among other things within an hour. Zomato is looking to enter the hyperlocal domain through this reported Dunzo acquisition. Money Control also reports that a similat deal between Dunzo and Swiggy also came into picture, but couldn’t fructify.
Dunzo, which began its services via Whatsapp in 2015, has since expanded to major Indian metros via a fully functional app. The company has also been in talks with multiple investors to raise a $15-$20 Mn round.