Dunzo, the leading logistics start-up, announced that its seller arm has officially joined the Open Network for Digital Commerce (ONDC), a move aimed at accelerating its business-to-business (B2B) operations. Backed by Reliance Retail, Dunzo is set to onboard over 20,000 merchants across various sectors within the next 45 days. This strategic move comes amidst the company’s ongoing financial challenges, which have led to three rounds of layoffs and salary payout deferrals earlier this year.
Local merchants joining Dunzo’s B2B vertical will now have direct access to the ONDC network, enabling them to leverage its extensive reach and customer base. The company has ambitious plans to onboard 20,000 local merchants across the food, grocery, and pharmaceutical sectors in the coming weeks.
Dunzo’s decision to join ONDC in July 2023 has already shown promising results. Since its onboarding, the company has experienced significant growth, witnessing a threefold increase in the number of daily orders for its merchants. In just under two weeks, Dunzo’s local merchants have been processing over 3,000 daily orders for groceries and essential items through the ONDC platform.
Co-founder of Dunzo, Dalvir Suri, expressed his enthusiasm about the collaboration, stating, “We are thrilled to be part of the ONDC network and drive the change in India’s ecommerce landscape. The rapid increase in daily orders through the platform is a testament to the network’s potential impact on the market. We aim to continue this momentum and onboard 1,500 local merchants within the next week.”
The ONDC platform has been designed to foster digital commerce and provide a level playing field for businesses of all sizes. By joining ONDC, Dunzo is positioning itself at the forefront of the evolving ecommerce landscape, hoping to witness a paradigm shift in the industry.
This development comes at a crucial time for Dunzo, as it faces financial challenges and intensified competition in the quick-commerce sector. In its efforts to manage cashflow, the company had to resort to layoffs and deferred salary payouts earlier this year.
Moreover, Dunzo has been embroiled in a legal battle with several companies over unpaid dues, including Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo, and Glance. These disputes have added to the company’s financial woes and have necessitated a strong focus on profitability and raising capital.
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Since its inception in 2015, Dunzo has raised close to $500 million in funding from major investors such as Reliance, Google, Lightrock, Lightbox, and Blume Ventures. In April 2023, the company secured $75 million in funding through convertible notes from Google, Reliance Retail, and other existing investors.
With its recent ONDC collaboration and ongoing efforts to revamp its business model, Dunzo aims to overcome its financial hurdles and continue offering efficient logistics solutions to customers and merchants across India. As the company forges ahead with its growth plans, it remains to be seen how this strategic partnership with ONDC will shape India’s ecommerce landscape in the days to come.
