Reliance Retail has invested $200 million (approximately Rs. 1,488 crores) in Bengaluru-based Dunzo to enter the country's fast-rising quick delivery industry.

With a $200 million investment, Reliance Retail will own 25.8% of the online delivery business.

Along with the cash, Dunzo and Reliance Retail will form business relationships. Hyperlocal logistics will be enabled for RRVL stores, enhancing Reliance Retail's omni-channel capabilities.

Dunzo will also help JioMart's merchants with last-mile delivery.

The funds would be used to build Dunzo's B2B business segment to support local businesses in towns around the country, the company stated.

Dunzo is a global leader in fast commerce, an industry worth over USD 50 billion.

Since its start in Bengaluru earlier this year, Dunzo Daily has grown by over 20% week-on-week.

The Dunzo Daily model delivers daily and weekly requirements in 15-20 minutes, focusing on fresh produce.

According to RedSeer research, India's fast commerce sector will rise to USD 5 billion by 2025 from USD 0.3 billion now.

According to the survey, rapid commerce is booming in India due to changes in consumer behavior, significant businesses like BigBasket and Blinkit, and instant delivery platforms.