Tata Digital is in talks to buy a stake in hyperlocal delivery startup Dunzo.
While the exact value of the deal is not known, it may value the company at Rs 1,093-1,457 crore, Mint reported, citing people aware of the matter, adding that Tata may own a close to controlling stake in the startup.
Dunzo had raised Rs 290 crore in a round of funding earlier this year.
The company is also aiming to raise Rs 1,094 crore with an aim to reach Rs Rs 7,300 crore in revenue in the next two years, according to a Bloomberg report.
Tata Digital recetly invested in fitness startup CureFit, with CureFit's founder and chief executive Mukesh Bansal joining Tata Digital in an executive role as its president. The company has also bought a majority stake in online grocery seller BigBasket, aiming for a mass push in its digital portfolio.
Dunzo was launched in 2015, and has raised funds from industry big-wigs like Google, Lightbox, Alteria and South Korea-based STIC.
As per the Registrar of Companies, Dunzo is valued at Rs Rs 1,600 crore as of June 2020.
“We’re very surprised by the buyout question, which is not up for discussion at all. That being said, we want to highlight: Dunzo has doubled as a business in the last 75 days and processes over $200 million in annualized gross merchandise (GMV) value," a Dunzo spokesperson told Mint.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks