Dunzo, the homegrown quick-grocery delivery provider, currently embroiled in a controversy for its failure to compensate employees for several months, is reportedly in the advanced stages of negotiations to secure an investment between $80 million to $100 million for its series G funding round.
Also Read: Dunzo’s dark store operations grind to a halt as off-roll employees demand July salaries
Reports from the prominent startup coverage platform, Inc42, indicate that Dunzo, the hyperlocal delivery startup headquartered in Bengaluru, is currently engaged in discussions with its current investors, which include Lightbox and Lightrock, with regards to raising additional funds.
The funding round “mostly comprises equity funding and can have a small debt element”, the report mentioned.
Dunzo was yet to comment on the report.
If the fundraising materializes, it could provide the startup with the means to address both salary disbursements to its employees and the settlement of outstanding payments to its vendors.
Since March of this year, Dunzo has been served with legal notices from no fewer than seven companies.
It had reportedly received legal notices from Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo and Glance.
Read More: Cash-strapped Dunzo faces legal notice from Facebook and Nilenso over unpaid dues
Also Read: Legal troubles mount for struggling Dunzo as companies seek payment resolution
In total, Dunzo’s outstanding debts to vendors amount to around INR 11.4 crore, which is nearly double the previously estimated figure of INR 5-6 crore.
The quick-grocery delivery provider Dunzo has reportedly promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June.
Read More: Dunzo commits to pay 12% annual interest on withheld salaries amid financial challenges
In addition, the startup assured them that it was on track to pay off all outstanding debts by September 4, according to earlier reports.
The company was supposed to clear all pending dues by July 20, but an email was sent out, pushing the deadline to September 4.
“Thank you for your patience and continued support. We understand the inconvenience this (delay in salaries) has caused and want to ensure that we provide the possible support for the delay,” Dunzo’s payroll team said in an email to employees.
“There will be interest paid of 12 per cent per annum,” it added.
