Dunzo, the struggling quick-commerce startup, has reportedly received legal notices from at least seven companies, including Google and Facebook, over pending dues. The notices are adding to the challenges faced by the company in its bid to overcome its current difficulties.
According to a report by Moneycontrol, Dunzo had been served with legal notices from several companies, including Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited (FBI), Cupshup, Koo, and Glance. The notices were issued in response to various matters concerning the company.
Read More: Cash-strapped Dunzo faces legal notice from Facebook and Nilenso over unpaid dues
Presently, the amount of money owed by Dunzo to these vendors is approximately INR 11.4 Crores.
According to the report, agritech startup Clover Ventures sent a notice to Dunzo on July 19, requesting the clearance of pending dues amounting to INR 2 Crores.
Meanwhile, advertising company Cupshup said in its demand notice, “…My client would also prefer an amicable settlement over bitter litigation but my client is also apprehensive about the financial health of Dunzo as a going concern.”
“The outstanding amount is substantial and owing to the delay in payments, my client has suffered severe financial hardships…My client is also responsible for the livelihood of its employees and hence cannot keep waiting for the payments,” the notice added.
Glance, the lock-screen platform that displays ads on phones, issued a notice to Dunzo demanding payment of INR 58 lakh for the services utilized by the company.
“…Please note the unless we are receipt of the amount due within the aforesaid period, we reserve the right to commence legal proceedings at your cost and peril to recover the debt without further notice to you and this notice may be tendered in court…as evidence of your failure to pay amount due,” Glance’s notice to Dunzo said, as per the report.
Additionally, Dunzo has not returned the security deposit, amounting to over INR 62 lakh, to microblogging website Koo. Koo had subleased an office space from the quick commerce startup but vacated it earlier this year.
The development comes at a time when Dunzo, once a leading player in India’s quick-commerce space, finds itself facing challenges in raising fresh funds.
Earlier this month, the struggling startup, which had already deferred salaries for its employees, made the difficult decision to once again postpone the payments. In an internal email addressed to the employees, Dunzo conveyed that the remaining portion of June salaries, initially scheduled to be credited by July 20, would now be disbursed in early September.
Amid these challenges, a number of employees at the startup have begun submitting their resignations. Furthermore, Dunzo is reportedly considering a layoff of approximately 200 employees.
Read More: Dunzo’s financial woes continue: Third round of layoffs to impact 20% of workforce
Dunzo, in competition with Swiggy Instamart, Zepto, and Zomato-owned Blinkit, is reportedly in talks with its largest shareholder, Reliance Retail, to secure an additional cash injection of at least
$20 million.
Read More: Dunzo seeks USD 20 Million in funding from Reliance Retail amid cash flow challenges