According to the reports, Dunzo, a cash-strapped startup, is seeking an additional Rs 164 crore (approximately USD 20 million) from Reliance Retail, it’s largest shareholder. This request comes after Dunzo fell short of its target of raising USD 75 million through the issuance of convertible notes. In April, Dunzo managed to raise only USD 45 million as only Google and Reliance Retail subscribed to the notes.
In addition to the fundraising challenges, it is mentioned that Dunzo reportedly limited its employees’ salaries to Rs 75,000 for the month of June. These measures suggest that the company is facing financial difficulties and is actively seeking additional funding to support its operations.
Dunzo has a significant ownership by Reliance Retail, with a stake of 25.8 per cent, while Google holds a slightly smaller stake of just under 20 per cent.