Biswas stressed the need for building a business that empathises with its users, partners and merchants
According to him, the business of commerce is potentially an unlimited business
Consumer preferences are changing everyday along with technology: Biswas
From starting out on WhatsApp to having three different segments in the delivery business, Bengaluru-based Dunzo has come a long way since its inception in 2015. The startup now counts Google and Reliance among its investors. Its revenue jumped 67.2% year-on-year in FY21 to INR 45.9 Cr, while losses narrowed by 33% to INR 225.2 Cr.
However, Kabeer Biswas, cofounder and CEO of Dunzo, has bigger aspirations than just plain numbers.
“We want to be able to create one of the largest consumer convenience businesses in the country,” Biswas said at Inc42’s The Makers Summit 2022.
He also stressed on the need for building a business that empathises with its users, partners and merchants, and making sure that all of them are delighted to be able to come in contact with the product and the brand.
Talking about what success means to him, Biswas said that listing the startup is his ambition. Earlier in an interview to Moneycontrol, he said that the hyper-local delivery startup was planning an initial public offering (IPO) in the next two or three years.
In January this year, Dunzo raised $240 Mn in a fresh round of investment led by Reliance Retail Ventures Ltd. The Mukesh Ambani-led company picked up a 25.8% stake on a fully diluted basis in Dunzo for $200 Mn.
The startup is planning another fundraise of $250-300 Mn to boost its expansion plans.
According to Biswas, the business of commerce is potentially an unlimited business.
“You can optimise every part of it till the nth degree and you will still find more after that. It is (not) only because the technology is changing but customer preferences are also changing,” he said during the session.
“You are sitting at the crux of logistics and commerce business that can allow you to be unhappy with the end-user experience even after having optimised everyday. It’s a great place to be because you can make sure you keep optimising the nth thing just to make it the best possible user experience that exists for them. That’s what drives us. We want to be able to do this till a point where we don’t have anything more to optimise,” Biswas added.
The Bengaluru-based startup operates in three business categories. Under the Dunzo Daily category, the users can buy from dark locations. Besides, it also runs a marketplace business and offers pick up and drop service.
In the quick commerce segment, Dunzo competes with the likes of Swiggy Instamart, Ola Dash, BB Now, Zepto, among others. According to a report by RedSeer, India’s quick commerce market is expected to witness a 15X growth by 2025, reaching a market size of close to $5. Bn.
Although the quick commerce segment is growing at a rapid pace with the entry of new players, and VC money, there have always been questions about its sustainability and relevance beyond the top cities.
However, Bisaws is of the view that the category can exist in Tier 2 and 3 cities but the promise may change. It is important to redefine what convenience shopping looks like for customers, he said.