Dunzo, the quick commerce startup supported by Reliance Retail, is facing challenges in securing additional funding. Sources indicate that the company may secure a relatively modest amount, estimated between $30-40 million, and even that funding may come with significant conditions favoring existing investors with regards to liquidity preference. A board meeting is anticipated by the week’s end to review and potentially approve this funding arrangement.
In its efforts to obtain the vital funding, Dunzo has put forth a proposal to trim its monthly expenditure to a mere $300,000, and it plans to achieve this by operating with a considerably smaller team of approximately 200 employees, as disclosed by informed sources. Prior to September, the financially challenged company was incurring a monthly expenditure of approximately $600,000. At the beginning of the year, Dunzo had a workforce exceeding 1,000 employees, but it has since undergone three rounds of workforce reductions.
Dunzo, which is also backed by Google, is set to undergo a strategic realignment. The company’s primary focus will shift to its B2B vertical, Dunzo Merchant Services, which is expected to constitute a substantial 70-80% of its operations, with the remainder geared towards the consumer market. Under this revised strategy, grocery deliveries will be exclusively fulfilled through third-party stores, while Dunzo will continue to provide its popular pick-up-and-drop services.