City
Epaper

Dunzo faces legal notices by FB, Nilenso over unpaid dues of Rs 4 crore

By IANS | Updated: July 20, 2023 17:45 IST

New Delhi, July 20 Homegrown quick-grocery delivery provider Dunzo has faced a legal notice by Facebook India Online ...

Open in App

New Delhi, July 20 Homegrown quick-grocery delivery provider Dunzo has faced a legal notice by Facebook India Online Services Private Ltd ("FBI") and Bengaluru-based software consultancy firm Nilenso over unpaid dues of Rs 4 crore, media reports said.

According to Moneycontrol, citing sources, Dunzo has made partial payments to Facebook but still owes the tech giant approximately Rs 1.5 crore. It had used Facebook's advertising services but had not paid the full amount.

Google, Dunzo's second-largest backer, has recently served a legal notice to the startup, demanding the settlement of unpaid dues.

"Dunzo defaulted in making its payments to FBI under the Contract, despite repeated efforts, verbally and in writing, to rectify the delinquency, Dunzo acknowledged its liabilities and started making the payment to FBI. However, the payment was insufficient to settle all the outstanding balances under the account,” the legal notice read.

According to the report, the demand notices would not exceed Rs 5-6 crore for the startup in total.

While Dunzo was still dealing with Facebook, the report stated that Nilenso, which provides contract software engineers, had also sent Dunzo a demand notice under the Insolvency and Bankruptcy Code (IBC) for payment of outstanding dues.

The Bengaluru-based startup is still owed around Rs 2.5 crore, after paying around Rs 1 crore from its total outstanding.

As per the report, there is pending litigation between Nilenso and Dunzo.

Meanwhile, Dunzo has said it will not be able to pay employees' salaries until early September, a further delay from the earlier deadline of July 20. The company has also delayed the August salary for senior employees to September 4 as well, it said in an email seen by TechCrunch.

The delay comes as the startup focuses on “streamlining our cash flow so we can build a more sustainable business for the future”, according to the Bengaluru-headquartered startup.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tags: congresspitrodadelhimodideepikabjpwest-bengaldeepika-padukoneajay-devgnthakur
Open in App

Related Stories

MaharashtraBMC Elections 2025: Devendra Fadnavis Says Clarity on Seat-Sharing Will Emerge in Two Days

EntertainmentDe De Pyaar De 2 Box Office Collection Day 2: Ajay Devgn & Rakul Preet Singh's Film Sees 50% Surge, Crosses ₹23.22 Crore

EntertainmentRuhi Singh on Deepika Padukone’s 8-Hour Shift Debate: ‘I’m in Love With My Work and Want to Be on Set Every Day

CricketBCCI Gives BIG Update on Shubman Gill’s Injury During India vs South Africa 1st Test at Eden Gardens

EntertainmentDe De Pyaar De 2 Box Office Collection Day 1: Ajay Devgn, R Madhavan, Rakul Preet Singh’s Film Earns Over Rs 8 Crore on Opening Day

Technology Realted Stories

TechnologyV-P Radhakrishnan highlights CAG's global standing as external auditor for WHO & ILO

TechnologyIndia’s AI shift from pilots to performance as 47 pc enterprises have multiple AI use cases: Report

TechnologyIndia's space programme soars with new milestones, eyes human spaceflight in 2025: Report

TechnologySouth Korea vows to minimise barriers for companies in meeting with biz leaders

TechnologyHyundai Motor to invest $86 billion in AI, robotics over 5 years