Dunzo's logistics arm plans to expand business to 10-15 new cities in next 18 months: Cofounder Dalvir Suri

Reliance Retail-backed Dunzo's logistics arm Dunzo4Business plans to expand the business to 10-15 cities in the next 12-18 months, a senior company official has said.

Dunzo cofounder and Dunzo4Business (D4B) head Dalvir Suri said the logistics aggregator firm is working, along with the government-supported Open Network for Digital Commerce (ONDC), to cater to intracity last mile delivery of products.

"In a year's time or 18 months' time, along with ONDC and my b2b logistics business, we do see ourselves entering into 10 to 15 new cities," Suri said.


He said that at present, D4B has a presence in about 10 cities.

The company joined the ONDC platform about a year ago and, currently, claims to be serving 60-70 per of the total order received on the platform for the last mile delivery, besides orders received on Dunzo for delivery of groceries and some other merchants.

"Bangalore, Delhi, Hyderabad and Chennai are four cities where they (ONDC users) are putting most of the orders. They are scaling the network as we speak, and we are pretty much present in all the cities with them. For us, it adds a new revenue channel to run more orders on the network; this means more efficiency in bringing down the cost," Suri said.

He said that D4B, in terms of revenue, has achieved unit economics positive and will focus on scaling up the business in the next 12-18 months.

The company at present works with over 70,000 delivery partners across 10 cities.

Suri said that grocery, food and pharma are the top categories that people are ordering, with an average order ticket size of Rs 200-4,000 and the company will cater delivery of all products that can be delivered on two-wheelers.