Dunzo raises Rs 50 Cr debt from Blacksoil
- ByStartupStory | December 1, 2022
Dunzo, a quick commerce startup, has raised Rs 50 crore ($6.2 million) from Blacksoil India through debentures. The company, which has its headquarters in Bengaluru, has joined a number of growth-stage startups that have raised loans during a funding freeze when equity financing has dried up.
According to the company’s regulatory filing with the Registrar of Companies (RoC), the board of directors of Dunzo has approved a special resolution to allot 1,000 non-convertible debentures at an issue price of Rs 5,00,000 per debenture to raise up to Rs 50 crore from Blacksoil.
Earlier this year, Dunzo acquired $240 million under the leadership of Reliance Retail at a valuation of roughly $765 million. Additionally, the loan financing came as Dunzo prepared to close some of its dark storefronts in Hyderabad and the NCR. Throughout the process, the organization also let go of a few staff members. The first to report the development was Entrackr.
From its annual financial statement for FY22, Dunzo’s inability to control spending is evident. The company’s losses increased 2X and reached Rs 460 crore in the fiscal year (FY22). During that time, revenue more than doubled to Rs 54 crore.
Over the past few months, a number of growth-stage and late-stage firms have raised capital through debt or convertible notes. Udaan, a leader in business-to-business e-commerce, raised $120 million in financing and convertible notes with the help of its current owners and bondholders. In addition, Byju’s borrowed Rs 300 crore ($36.5 million) without any security from its wholly-owned subsidiary, Aakash Educational Services Limited.
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