Dunzo seeks to raise $35 million in rights issue at a slashed valuation of $200 million: Report
- The funding will slash the valuation of the beleaguered startup Dunzo to about $200 million, which is just one fourth of its peak value of $800 million, a report said.
Dunzo, the quick commerce startup, will seek a final board approval to raise up to $35 million through a rights issue at a reduced valuation, a report said.
The funding will slash the valuation of the beleaguered startup to about $200 million, which is just one fourth of its peak value of $800 million, Economic Times reported quoting several people aware of the matter.
A few of the existing investors have committed around $10-15 million in capital at the reduced valuation, the report added.
The company’s board has not yet cleared the proposal. Dunzo founder and CEO Kabeer Biswas is likely to seek clearance from the board, including top shareholders like Reliance Retail, Google and others, in the coming days to close the much-needed funding, the newspaper reported quoting sources.
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“The current commitment is at around a $200 million valuation. That’s also the blended average for most investors in the firm before it was valued at close to $800 million,” one investor privy to the discussions told ET.
“This money is also committed to the fact that it (Dunzo) will become a B2B company for all practical purposes doing delivery for business customers,” the person said, while adding that “everyone putting in the capital needs to agree on the new valuation”, according to the report.
It was earlier reported that amid cash crunch in the crisis-ridden hyper local delivery startup, its co-founder Dalvir Suri will step down from his position. The company will also undergo an organisation-wide restructuring from this quarter.
Read here: Dunzo co-founder Dalvir Suri steps down, company to undergo organisation-wide restructuring
The exit comes at a time when Dunzi is struggling to generate funds and is trying all sorts of measures to cut its spending.
It has announced at least three rounds of layoffs and also deferred or reduced salaries for some employees as well as reduced 50% of its dark stores.
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Business NewsCompaniesStart-upsDunzo seeks to raise $35 million in rights issue at a slashed valuation of $200 million: Report
First Published:4 Oct 2023, 09:03 AM IST
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