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Back in November 2022, when <keyword id="19918826" type="General" weightage="20" keywordseo="ChatGPT" source="keywords">ChatGPT</keyword> was launched for the public, interest around <keyword id="19896272" type="General" weightage="20" keywordseo="generative-AI" source="keywords">generative AI</keyword> reached new heights. The AI chatbot’s ability to respond to questions in a manner as if a human being was talking left many people surprised as well as awestruck. Soon, AI became a buzzword in the tech industry and investors started pouring funds heavily into AI companies. <h2><keyword id="19959576" type="General" weightage="100" keywordseo="Dunzo" source="keywords" meta.keywordsubtype="org" meta.entityname="Dunzo" meta.hostid="261" meta.entityid="Dunzo">Dunzo</keyword> co-founder staring his <keyword id="20128843" type="General" weightage="20" keywordseo="AI-company" source="keywords">AI company</keyword></h2>In May, an Economic Times report based on insights from market research firm Tracxn said that AI startups in India have already raised USD 91.7 million in funding so far this year, which is a significant increase from USD 29.6 million during the same period last year. And now, former <a href="https://www.businessinsider.in/business/startups/news/quick-commerce-platform-dunzo-lays-off-30-of-its-workforce/articleshow/99290084.cms" data-type="tilCustomLink" target="_blank">Dunzo </a>chief <keyword id="22628971" type="General" weightage="20" keywordseo="Mukund-Jha" source="keywords">Mukund Jha</keyword> is reportedly looking forward to start his own AI company. A Moneycontrol report citing sources said that Jha is in discussions to raise between Rs 50-80 crore (approximately $6-10 million) from <keyword id="22628972" type="General" weightage="20" keywordseo="Together-Fund" source="keywords" meta.keywordsubtype="org" meta.entityname="Together Fund" meta.hostid="261" meta.entityid="Together Fund">Together Fund</keyword> for his new venture. This comes after Jha stepped down from the board of the cash-strapped startup Dunzo last year. Jha's new venture reportedly focuses on generative <a href="https://www.businessinsider.in/business/startups/news/ai-startup-neysa-raises-20-mn-from-matrix-partners-nexus-venture-partners-more/articleshow/109181059.cms" data-type="tilCustomLink" target="_blank">artificial intelligence</a> (Gen AI) and aims to automate quality assurance (QA) processes. "Think of it as a blend of AI and SaaS," an insider told Moneycontrol. QA involves creating and running tests, identifying errors, and providing feedback to ensure products meet quality standards. <h2>What happened with Dunzo?</h2>The delivery startup Dunzo delivers essential goods like groceries, household items, fruits and vegetables, pet supplies, pharmaceuticals etc to people locally. Supported by <keyword id="19901342" type="General" weightage="20" keywordseo="Reliance-Retail" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Retail" meta.hostid="261" meta.entityid="Reliance Retail">Reliance Retail</keyword>, the startup has faced strong competition from companies like Zepto, Swiggy, and BlinkIt. Despite raising around $500 million, Dunzo has struggled to secure additional investment and manage payroll. In February, there were rumors that Flipkart might acquire the platform, but there have been no updates on this matter since. Dunzo, on the other hand, was making headlines earlier this year for facing various financial struggles. The company’s top investor Lightbox also exited in May this year. On the other hand, the company is reportedly experiencing a cash crunch and owes approximately Rs 11.4 crore to various vendors, including Google India, Nilenso, Clover Ventures, Facebook India, Cupshup, Koo, and Glance. <h2>About Together Fund</h2>Together Fund, from which Jha is reportedly going to raise funds for his new venture, has invested in over 20 companies across various SaaS sectors, including recruitment, sales intelligence, marketing, healthcare, and cloud solutions for connected devices. “Our areas of focus span across SaaS, enterprise software, developer tools, open source software, cloud-native infrastructure and API-first businesses. We typically invest early (seed, pre A or series A) to help founders through the crucial zero-to-one part of their journey,” the company’s website reads. Together Fund was founded in 2021 by Girish Mathrubootham of Freshworks, Manav Garg of Eka Software, and Shubham Gupta formerly of Matrix Partners India. It initially raised USD 85 million for its first fund and increased the total to USD 150 million with its second fund announced in 2023

Dunzo co-founder Mukund Jha plans to start his own AI company, seeks to raise up to Rs 80 crore from Together Fund

Almost one in five of India’s future unicorns drop off the race as funding winter bites

<ul><li>Dunzo has registered a loss of ₹168.9 crores in FY19. </li><li>Its revenue from operations stood at ₹76.59 lakh. </li><li>Dunzo wants to hit 17 million monthly transactions by 2020, which could possibly mean more investment and more burning of cash. </li></ul>Hyperlocal delivery startup Dunzo has registered a loss of ₹168.9 crores in FY19 for a wafer thin revenue of ₹76.59 lakh. Its losses have grown eight times over, whereas its revenue even with a five-fold increase is still minuscule compared to its losses. According to <a href="https://www.livemint.com/companies/start-ups/dunzo-s-fy19-losses-up-by-8x-at-rs169-crore-11572437539021.html">reports,</a> Dunzo’s total revenue for the year stood at ₹3.5 crore, with ₹2.8 crore coming in from “other income”. The Google-backed Dunzo recently raised $45 million in a series D round from Lightbox, 3L Capital and others. It was reportedly valued at $200 million then. Dunzo was Google’s first direct investment in India. Dunzo is registering half a million monthly transactions but in an <a href="https://www.businessinsider.in/advertising/brands/article/dunzo-is-aiming-at-achieving-17-million-monthly-transactions-by-the-end-of-next-year-with-minimal-marketing/articleshow/71649421.cms">earlier interview</a> with Business Insider, Kabeer Biswas, co-founder and CEO of the company had said that they are aiming for 17 million monthly transactions by the end of 2020. But the four-year-old startup also has new and big competition. The much more experienced and heavily funded unicorn Swiggy entered its category with <keyword id="8016811" type="UNKNOWN" weightage="20" keywordseo="Swiggy-Go">Swiggy Go</keyword>. Now, Swiggy entered the space with a ready fleet of delivery executives and an established name, which would make it difficult for Dunzo as it aims to expand to 20 cities.

Dunzo lost ₹169 crore last year – Swiggy Go may make this year even tougher

<ul><li><keyword id="6359432" type="DOMAIN" weightage="20" keywordseo="britannia">Britannia</keyword>'s essentials products such as biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy whitener will be sourced by <keyword id="3275685" type="PERSON" weightage="20" keywordseo="dunzo">Dunzo</keyword> from its distribution centers.</li><li>Earlier two FMCG makers - ITC Foods and Marico - had announced such partnerships to get their products delivered at consumer's doorsteps by using the service of app-based aggregators.</li></ul>FMCG major <keyword id="146218" type="COMPANY" weightage="20" keywordseo="Britannia-Industries">Britannia Industries</keyword> on Tuesday said it has partnered with Dunzo, an on-demand e-commerce platform, to deliver its range of products during the nationwide lockdown. Customers can get Britannia products at their doorsteps through the Dunzo app in less than an hour of ordering from the 'Britannia Essentials' store. The first store in Bengaluru will be operational from Tuesday onwards and would be extended to other cities such as Mumbai, Pune, Delhi, Gurgaon, Jaipur, Hyderabad and Chennai, a joint statement said. "During this unprecedented time, it is critical for us to maintain a continuous supply of our products which are daily staples in millions of Indian households. With a significant rise in demand for at-home delivery, we are happy to leverage Dunzo's innovative and most advanced technology platform, to enable seamless delivery of products every day," Britannia Industries Managing Director <keyword id="459296" type="PERSON" weightage="20" keywordseo="Varun-Berry">Varun Berry</keyword> said. Britannia's essentials products such as biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy whitener will be sourced by Dunzo from its distribution centers. "Across the country, there is a demand for essentials and in these extraordinary times, companies need to rise to the occasion. We at Dunzo are committed to helping our cities fight the COVID-19 pandemic," Dunzo CEO and Co-Founder Kabeer Biswas said. Earlier two FMCG makers - ITC Foods and Marico - had announced such partnerships to get their products delivered at consumer's doorsteps by using the service of app-based aggregators. ITC Foods has announced partnership with Dominio's Pizaa and launched "Domino's Essentials" to deliver groceries and packaged foods to customers during the lockdown period. Marico has partnered online food ordering platform Swiggy and <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> to deliver essential food items to consumers. Under this partnership, Swiggy and Zomato would deliver essential food items under the Marico portfolio which includes Saffola Oils, Saffola Plain Oats, Saffola Masala Oats and Coco Soul Virgin coconut oil, from their homes. India is presently going through an unprecedented complete lockdown of three weeks, ending on April 14, to prevent the spread of <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword>. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/zomato-and-swiggy-both-get-raise-funds-but-swiggy-leads-with-a-higher-valuation/articleshow/75008445.cms" data-type="tilCustomLink">Zomato and Swiggy both raise funds – but Swiggy leads with a higher valuation</a>

Britannia started home delivery of biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy products

<ul><li>Startups from across sectors – ecommerce, digital payments etc., continue to burn cash even though some of them have also raised funds this year. </li><li>Amazon, Flipkart, <keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword> have all reported losses for the financial year ending March 2019.</li></ul>The financial reports of most Indian unicorns and startups show that even while they are growing at a fast pace, the numbers are not on their side. Startups across sectors – ecommerce, digital payments etc., continue to burn cash even though some of them have also raised funds this year. Here’s a roundup of startup losses that have been reported so far <div type="Slideshow" msid="71851673" hostid="261" title="2019 roundup so far: Startups are growing bigger but by widening losses" firstImageMsid="71851674" slideCount="7"></div>

2019 roundup so far: Startups are growing bigger but by widening losses

<ul><li><keyword id="3275685" type="PERSON" weightage="20" keywordseo="dunzo">Dunzo</keyword> has grown 40X as a business and 8X in terms of number of people on its platform in the past 18 months.</li><li>While its present in eight cities currently, it aims to enter 20 cities in the long run because they believe that’s where 70% of the business comes from.</li><li>With half a million monthly transacting users and two million monthly transactions, <keyword id="5016554" type="PERSON" weightage="20" keywordseo="kabeer-biswas">Kabeer Biswas</keyword>, CEO, is certain they will touch 15-17 million monthly transactions by the end of next year.</li><li>Recently Dunzo raised $45 million in a fresh round from <keyword id="1058387" type="COMPANY" weightage="20" keywordseo="Lightbox">Lightbox</keyword>, <keyword id="6355629" type="DEFINITION" weightage="20" keywordseo="google">Google</keyword>, <keyword id="8178411" type="UNKNOWN" weightage="20" keywordseo="3L-Capital">3L Capital</keyword>, and <keyword id="8233231" type="UNKNOWN" weightage="20" keywordseo="stic-investment-stic-ventures">STIC Investment &amp; STIC Ventures</keyword>.</li></ul> It was in 2015, while working at another startup in Gurgaon that the idea for Dunzo first came to CEO Kabeer Biswas. The thought was simple – in a day and age when one can hail a cab by tapping a few times on your phone screen, why can’t the same be done for everything else? The thought primarily came to him because he was working for 15-16 hours everyday and did not want to waste his weekends on running errands. He ran the idea by a few friends in Bangalore, to get a validation on his idea, to get a sense of whether it was viable to run a <keyword id="3179264" type="PERSON" weightage="20" keywordseo="hyper-local-delivery">hyper-local delivery</keyword> organization, and whether there was any demand for it. He set up Dunzo on a Whatsapp group and asked three of his friends to simply text him the chores they needed to get done. While there wasn’t much to do intially, within four months, it blew up on Whatsapp, Biswas had close to 10,000 users, without spending any money on advertising about the platform. It all happened through word-of-mouth. This was also the time when Biswas was the only person managing everything. It was in 2016 that Karthik Reddy of Blume Ventures was in Bangalore and he heard about Dunzo from the wives of his friends. Curious to know more about the venture, he got in touch with Biswas and that’s how Dunzo raised its first capital. The most part of 2016 was spent in building a team and putting up the product on the store. By 2017, Biswas was clear about the business model, Dunzo would largely do three things for its consumers, the business would be about collecting requests from consumers, the platform would help them place those requests seamlessly, would manage payments and then figure out who the correct person on ground is to manage the request. It was 2018 when Dunzo came under the spotlight, thanks to a $12.5 million funding from Google, its first direct investment in India. Since then, in the words of Biswas, ‘Things have been insane.’ He shares that while 2018 was all about building scale, 2019 has been all about managing that scale. What’s worked in favour of Dunzo so far While coming up with a business plan for Dunzo, Biswas says they were studying global players and seeing if they could find any parallel to what they wanted to achieve with their platform. The one platform that came closest to their offering was Indonesian unicorn Gojek, which is known to be a platform that delivers 'everything'. So what is it that Dunzo is trying to achieve? Biswas says, “We have been told globally that the number of times people use Dunzo in Indian cities is higher than what they have seen anywhere else in the world. The top 10% of our users use us 20 times a month. People are using us to largely deal with the local world around them. Someone told us, think of Dunzo as a browser on the top of the real world. It makes the real world a lot more convenient, exactly how the browser allows you to easily surf the internet. I believe by 2025, local search will no longer exist. It will most likely look like Dunzo, where you won’t want to search but tell the app about a shop and item and expect the app to get the work done for you. And the platform will take care of the payment and the logistics at the same time.” That the business model is working is clear from the fact that Dunzo has grown 40X as a business and 8X in terms of number of people on its platform in the past 18 months. Creating the 2.0 versions of on-demand services platforms Swiggy recently expanded its offering and launched Swiggy Go, an instant pick up and drop service to send packages anywhere across the city, a direct competition for Dunzo. While currently its offering the service only in Bengaluru, its plans are to expand to 300 cities by 2020. However, Biswas is unfazed and hardly looks at Swiggy’s offering as a threat. “Today there are two types of businesses, the 1.0 and the 2.0 businesses. Swiggy looks very much like the 1.0 businesses which went behind scale and built out a massive platform but the utilization ratios don’t work out. Globally, everybody who is a part of a 1.0 business has had to pivot to 2.0. For me, this is, if anything, a pivot at Swiggy, where just delivering food wasn’t good enough to make money. This is not only about Swiggy, but about every 1.0 business out there. They have to figure out the 2.0 version of them. Our utilization numbers are atleast 50-60% higher than any of the other 1.0 businesses.” Dunzo is also clear that they want to enter limited markets, and want to cover those markets extensively. “We believe that 20 cities account for almost 70% business in the country today. Our idea is to enter the top 20 cities in India and enter them deeply. We want to make sure that we are the largest local commerce player in these 20 cities. So we are very happy that Swiggy launched. Now that they have launched, we are still growing, and growing even faster. The only thing I can say is thank you, its helps us raise funds,” add Biswas with a laugh. Dunzo might even think of crossing international borders, in the next two years, shares Biswas. Plans for the next few quarters Currently Dunzo has half a million monthly transacting users and two million monthly transactions. By the end of next year, they expect to have 15-17 million monthly transactions on their platform. To achieve that, the platform will focus on improving their user experience. Biswas explains, “We genuinely believe that if you focus on building a better consumer experience, it leads to a better and sustainable business model. We are not in this business to gain market share but to make sure that we’re able to return our investor’s capital at some point. Every company that raises money has to give the money back and it has to be a sustainable business. So our focus will be to constantly invest on improving our consumer experience.” Currently, an average order takes 28 minutes to get delivered and within the next six months, Biswas expects to bump this number up to 25 minutes. Till today, Dunzo hasn’t spent too much on marketing the platform and it plans to keep it the same way in the foreseeable future. “For every 100 users that join Dunzo, 35-40 % of them are organic in nature. Around 35% come on board through incentivized referral channels, 15% come from BTL and 10% through digital,” explains Biswas. So no plans of using TV? His answer is a firm ‘No’. “I have this concept of ‘funny money’. When you have funny money, you should market big. However, if you are an internet business, why aren’t people talking to each other about you? They are all connected on the internet, so why do you need TV, really? TV is good for when your organic growth is slowing down and we are far away from it. It’s a trillion transactions that ‘we are chasing, and we are at 2 million currently. We have a long way to go,” he adds.

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Dunzo co-founder Mukund Jha plans to start his own AI company, seeks to raise up to Rs 80 crore from Together Fund

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Almost one in five of India’s future unicorns drop off the race as funding winter bites

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Dunzo lost ₹169 crore last year – Swiggy Go may make this year even tougher

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Britannia started home delivery of biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy products

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2019 roundup so far: Startups are growing bigger but by widening losses

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