New Delhi, Sep 25 Homegrown quick-grocery delivery provider Dunzo will be raising $35 million in funding from existing backers like Reliance Industries and Google as well as new investors following salary delays, media report said.
According to The Arc, citing sources, the exact terms of the new financing, including valuation, could not be determined immediately, but Dunzo's value is likely to fall below $800 million.
The company has raised nearly $500 million to date, with approximately $300 million coming in since early 2022.
According to the report, the company is hoping to avoid a cash crunch. Since June, it has failed to pay staff salaries on time and has also failed to pay vendor bills.
There have also been layoffs and a business restructuring.
If the new round closes this week, the company will be able to pay employees and, to some extent, streamline cash flow and operations, the report said.
Earlier this month, Dunzo further delayed the salaries of its employees for the months of June and July, this time to November, amid an ongoing fund crunch.
The startup may also vacate its office in Bengaluru to cut costs, according to its co-founder and CEO, Kabeer Biswas.
Biswas reportedly told employees that their pending payouts for June and July will now be cleared in November.
Dunzo earlier delayed salaries to the first week of October after being unable to raise funds.
It had also promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June.
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