Existing investors Reliance Retail and Google are in discussions to join the fresh fundraising round.
Dunzo, an Indian hyperlocal delivery service, is in late-stage talks to acquire approximately $50 million in a fresh fundraising round, according to two persons familiar with the subject, as the Bengaluru-based startup scrambles for comfort in an otherwise financial winter for smaller firms.
Reliance Retail and Google, two previous Dunzo supporters, are among those in talks to invest in the latest round, according to sources who requested anonymity since the information is private. According to the sources, financial discussions are now taking place mostly with existing sponsors.
For several months, the business has been attempting to secure funding, with the goal of raising at least $70 million and as much as $150 million. Dunzo competes with Swiggy’s Instamart, YC Continuity-backed Zepto, Tata-owned BigBasket, and Zomato’s BlinkIt for a piece of India’s retail sector, which is expected to expand to more than $800 billion by 2025, according to brokerage company Bernstein.
Delivery companies, which are normally among the most cash-hungry firms, are finding it increasingly difficult to attract fresh financing rounds as the global economy weakens.
Karthik Gurumurthy, Swiggy’s Instamart business leader, announced his resignation on Friday It’s a global dynamic that’s at work. The European quick delivery market has been reduced to three firms. Instacart’s internal value has been reduced to $10 billion, down from $39 billion in March 2021
