Dunzo nears $25-30 million funding boost to keep company afloat
Quick-commerce company Dunzo is poised to secure a crucial $25-30 million cash injection in a funding round involving major investors such as Reliance Retail, Google, and Lightrock. Moneycontrol has reported that the funds will be used to pay employee salaries and address other working capital requirements, providing much-needed relief for the beleaguered start-up. To note, Dunzo tried to raise money many times in the past months but has failed to close a round.
Reliance Retail, Google lead investment charge
Reliance Retail, holding a 25.8% stake and being the largest shareholder in Dunzo, will invest on a super pro-rata basis, increasing its ownership in the company. Meanwhile, Google India with a 19% stake, is the second-largest investor. Other prominent backers include Lightbox, Lightrock, and Blume Ventures, all of whom will invest on a pro-rata basis (putting in money based on existing stake in the firm).
Dunzo will also let go of office space
Dunzo has been grappling with financial difficulties for a while, leading to delayed salary payments for its employees and attracting legal notices. The successful completion of this funding round will offer a lifeline to the company, allowing it to meet its financial obligations and stabilize its operations. In addition to the funding, Dunzo is also planning to relinquish its office space to cut costs further.
