Struggling quick-commerce startup Dunzo has reportedly received legal notices from at least seven companies, including tech giants Google and Facebook, due to outstanding dues. Moneycontrol reported that Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited (FBI), Cupshup, Koo, and Glance have all sent legal notices to Dunzo.
Significant Outstanding Dues and Demands
As of now, Dunzo owes these vendors approximately INR 11.4 Crore. Among the companies that issued notices, agritech startup Clover Ventures demanded INR 2 Crore in pending dues from Dunzo in its notice sent on July 19. Advertising company Cupshup expressed its preference for an amicable settlement but raised concerns about Dunzo’s financial health as a going concern.
Glance and Koo Demand Payments
Lock-screen platform Glance, known for running ads on phone lock screens, demanded INR 58 lakh for services rendered to Dunzo. The notice from Glance warned of potential legal proceedings if the amount remains unpaid. Additionally, microblogging website Koo claimed that Dunzo failed to refund its security deposit of over INR 62 lakh after vacating office space subleased from the quick-commerce startup earlier this year.
Dunzo – Struggles Amidst Funding Challenges
The legal notices add to Dunzo’s mounting challenges as it faces difficulty in raising fresh funds. Earlier this month, the startup deferred employee salaries and further postponed payment to early September. Consequently, several employees have submitted their resignations, and the company may also lay off about 200 employees.
Dunzo Seeks Cash Injection from Reliance Retail
In its bid to overcome financial hurdles, Dunzo is reportedly seeking a cash injection of at least $20 million from Reliance Retail, its largest shareholder. The struggling startup competes with other players like Swiggy Instamart, Zepto, and Zomato-owned Blinkit in India’s competitive quick-commerce space. Despite the challenges, the startup remains hopeful that the cash injection will help alleviate its financial struggles and pave the way for a turnaround.
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