After experiencing salary delays, local quick-grocery delivery service Dunzo will seek $35 million (Rs 290 crore) in capital from both current supporters including Reliance Industries and Google as well as new investors, according to media reports.
The full parameters of the new funding, including valuation, could not be immediately determined, but Dunzo's value is probably going to dip below $800 million, according to The Arc, citing sources.
The company will be able to pay staff and, to a certain extent, streamline cash flow and operations if the fresh round closes this week, according to the article.
Due to an ongoing financial crisis, Dunzo further postponed the payment of employee wages for the months of June and July, this time to November.
In order to save money, the business may possibly close its Bengaluru headquarters, according to Kabeer Biswas, its co-founder and CEO.
According to reports, Biswas informed the staff that they would now receive their unpaid wages for June and July in November.
Due to his inability to gather money, Dunzo had postponed salaries until the first week of October.
Additionally, it had agreed to pay employees interest at a rate of 12% annually on the portion of their salaries that had been withheld as of June.
To date, the company has raised close to $500 million, with about $300 million coming in as of early 2022.
The corporation, according to the report, wants to avoid a financial shortage. It has neglected to pay vendor bills and personnel salaries on time every month since June.
Layoffs and a corporate restructure have also occurred.
0 Comments