Dunzo, a local delivery marketplace, has raised $45 million in a fresh round of Series D from Lightbox Ventures, Google, 3L Capital, and STIC Investment & STIC Ventures. With this round, its total funding raised to date is $81 million.

This round of investment was driven by Dunzo’s 40X growth in the last 18 months and a business model that focuses on unit profitability. Clocking over 2 million deliveries month-on-month, Dunzo has implemented a cross-category delivery model, with an average delivery taking 28 minutes across its 8 cities. The funds will be used to expand to the top 25 cities in the next 18 months, a top executive told BusinessLine.

“Dunzo has always focused on building a reliable business model while ensuring consumer empathy in every action that we take as a platform. Over the last year, we have built a model that understands Indian cities deeply and empowers offline commerce to deliver to consumers instantly. We believe in giving local merchants a fighting chance while creating sustainable earning opportunities for delivery partners. We are on course to building the largest commerce platform in the country with the most efficient logistics solution for each city,” said Kabeer Biswas, CEO and co-founder, Dunzo.

Dunzo will be deploying the funds to establish itself as the logistics layer for India, picking up and dropping almost anything and everything a consumer could want to buy and ship while integrating merchants and delivery partners on the platform. In its endeavour to build an “OnDemand 2.0” business, Dunzo has employed a utilisation-first approach to drive success in the hyperlocal business. It has been able to find the right mix of categories and economics to drive profitability for the long term rather than just drive market share by tweaking the model at scale.

“Dunzo has been a crucial spoke in driving the hyperlocal wheel and has the potential to go the distance in becoming the largest commerce platform in India. It is our belief that the team at Dunzo has tapped into the backbone of the Indian economy - local offline merchants. Their approach to growth has been uniquely sustainable and we are eager to see how they change local commerce dynamics in India” said Dave Leyrer, Co-Founder and Managing Partner, 3L.

Founded by Kabeer Biswas, Mukund Jha, Dalvir Suri, and Ankur Aggarwal in 2015, Dunzo is a hyperlocal e-commerce company that connects merchants, partners, and users to facilitate transactions across courier, commerce, and commute. Dunzo is present in the top 8 cities in India, including Bengaluru, Mumbai, Delhi NCR, Chennai, Hyderabad, and Pune. Dunzo also has bike taxi services in Gurgaon, Hyderabad, and Noida. Headquartered in Bangalore, Dunzo is backed by Google, Blume Ventures, Aspada Investments, Lightbox Ventures, STIC Ventures, and 3L Capital.