Dunzo To Raise USD 35 Million Funds From Reliance Industries and Google Following Salary Delays: Report
According to the report, the company is hoping to avoid a cash crunch. Since June, it has failed to pay staff salaries on time and has also failed to pay vendor bills.
New Delhi, September 25: Homegrown quick-grocery delivery provider Dunzo will be raising $35 million in funding from existing backers like Reliance Industries and Google as well as new investors following salary delays, media report said. According to The Arc, citing sources, the exact terms of the new financing, including valuation, could not be determined immediately, but Dunzo's value is likely to fall below $800 million.
The company has raised nearly $500 million to date, with approximately $300 million coming in since early 2022. According to the report, the company is hoping to avoid a cash crunch. Since June, it has failed to pay staff salaries on time and has also failed to pay vendor bills. There have also been layoffs and a business restructuring. WhatsApp Will Not Work on These Android Smartphones and Apple iPhones After October 24; Is Your Mobile Phone on the List? Check Details.
If the new round closes this week, the company will be able to pay employees and, to some extent, streamline cash flow and operations, the report said. Earlier this month, Dunzo further delayed the salaries of its employees for the months of June and July, this time to November, amid an ongoing fund crunch. The startup may also vacate its office in Bengaluru to cut costs, according to its co-founder and CEO, Kabeer Biswas. Bitcoin Registers Highest Number Of Transactions In Single Day After Two Years, 700,000 Logged Till September 15.
Biswas reportedly told employees that their pending payouts for June and July will now be cleared in November. Dunzo earlier delayed salaries to the first week of October after being unable to raise funds. It had also promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June.
(The above story first appeared on LatestLY on Sep 25, 2023 07:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).