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INTRODUCTION

Dunzo is a befitting role model for most young entrepreneurs today. Set up by Kabeer Biswas, an
alumnus of Mumbai University in 2014, this hyperlocal app based service provider is creating
the right kind of noise.1 Dunzo is a startup that facilitates ease of living or as their slogan goes-
“Save the excuses and the time”.2

You simply need to feed a task into it. This task must be logistical in nature, like picking up
groceries or an article from a friend’s house. The delivery boy will arrive at the store or location,
click a picture of the requested article and send it to you via the app. You must simply confirm
the order, make the payment (if required) online and the product will be delivered at your
doorstep. Mr. Biswas had previously also founded Hoppr, a startup that was acquired by Hike.

A simple idea, executed efficiently, Dunzo started out of Indira Nagar in Bangalore as a small
Whatsapp group in 2014 and soon expanded throughout Bangalore and now to Chennai, Delhi,
Pune, Gurgaon and Hyderabad. It raised $650,000 from its first round of funding from Blume
Ventures, Aspada Ventures, accompanied by other investors including, Rajan Anandan, MD of
Google India and Sandipan Chattopaday.3 Its watershed moment was when it raised $12mn from
Google in December, 2017 which was their first direct investment in a startup in India. 4 We have
studied the supply chain management system of Dunzo and aim to provide recommendations to
this remarkable innovation.

RECOMMENDATIONS

Dunzo is an app that streamlines the buying of daily items. It is the only player in its market and
faces competition in the delivery of non restaurant items delivery market from only local stores
and chemists which lack the scale to compete with a major competitor like Dunzo. However,
there are certain recommendations that we would like to provide Dunzo with. They include:-

1
https://factordaily.com/dunzo-hyperlocal-concierge-app-killing-bengaluru/- Published on 30.08.2016- accessed
on 01.03.2019
2
https://www.dunzo.in/about.html- accessed on 01.03.2019
3
https://www.techcircle.in/2018/11/13/task-management-app-dunzo-to-raise-money-from-existing-investors-
accesed on 01.03.2019.
4
https://www.businesstoday.in/technology/internet/google-first-direct-investment-indian-startup-bangaluru-
dunzo-12-million-usd/story/265379.html- accessed on 01.03.2019
1. Cash on Delivery Option- the payment for Dunzo’s items is only via online means. This
creates restrictions for customers as in today’s economy cash is still king. Not having
cash options creates several restrictions for customers especially when other restauarant
food delivery apps and local general stores provide cash options. It is recommended that
Dunzo must work on this aspect of their business to increase sales.
2. Inventory Management- Dunzo does not keep an active check on the availability of best
selling items that are offered by the stores that they have a tie up with them. Delivery
boys go there and then ask the shop keeper for the product. If it is available only then do
they get it. Dunzo must change its inventory management system to keep an active check
on the best selling items offered to keep customers informed.
3. Alternative product briefing- Dunzo partners are often clueless about the alternatives
available for their products and often suggest canceling orders as they are unable to think
of places where the same product or its alternatives are available. They must be briefed
about the same.
4. Better marketing- Dunzo has several stores in Pune on which they have put up their
banners. However, after interviewing one of them, namely Mahesh Dry cleaners at
Ganapati Chowk, they had horrible reviews of Dunzo and even shared their number to
interact with more people about how Dunzo has not interacted with them for 3 months
after setting up their banner and the people at Dunzo are not answering their calls. Dunzo
must make a better effort to reach out to its partners so that they give them better
reviews.

CONCLUSION

All in all Dunzo is probably the next Indian unicorn. It has created a new market for itself. It has
its shortcomings in terms of monitoring inventory and payment options, but is an innovative
startup and increased people’s confidence in the startup scenario in India. It has no other
competitors in its field in India which adds to proof of its’ credibility. Its $12 mn investment
from Google is proof of its brilliance. Probably something which may even be considered a
success of the ‘Make In India’ scheme. Hopefully it is a sign of the bright future of the Indian
startup ecosystem. Dunzo is a success story of its time.