Dunzo Reportedly in Talks for $80-100 Million Series G Funding Amid Salary Controversy

• ByStartupStory     |    August 19, 2023

Domestic on-demand grocery delivery provider Dunzo, which has faced controversy due to salary delays, is reportedly in advanced discussions to secure $80-100 million in its Series G funding round. The Bengaluru-based hyperlocal delivery startup is reportedly engaging with existing investors such as Lightbox and Lightrock, according to startup news platform sources.

This funding round is expected to primarily consist of equity funding with a potential minor debt component, as stated in the report. Dunzo has yet to provide an official response to the news. If this funding materializes, it could aid the company in settling overdue salaries and addressing pending vendor dues.

Since March of this year, Dunzo has received legal notices from at least seven companies, including Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo, and Glance.

Dunzo’s outstanding debts to vendors reportedly amount to approximately Rs 11.4 crore, nearly doubling the previous estimate of Rs 5-6 crore. The company has reportedly committed to paying employees an annual interest rate of 12 percent on the salary component that was withheld starting in June.

Furthermore, Dunzo has assured its workforce that it aims to clear all outstanding debts by September 4, as per previous reports. Although the original deadline for settling dues was July 20, an email notification was sent out, extending the timeline to September 4.

Follow Startup Story