Mukesh Ambani and his daughter Isha Ambani are considering injecting an additional Rs 164 crore into the Bangalore-based startup Dunzo, a competitor of Blinkit and Zepto. As per a report from The Economic Times, the startup is facing a significant financial crisis, prompting recent discussions with Reliance Retail, the largest investor in the company. For those unfamiliar with the startup, it operates as a grocery delivery app similar to Blinkit and Zepto. Founded in 2014 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, Dunzo has attracted funding from various rounds and garnered interest from major players like Google and Lightbox. In January last year, Mukesh Ambani invested around Rs 1641 crore to acquire approximately 25% stake in the company.
Turmoil and Strategic Shifts at Dunzo
In recent months, Dunzo has faced various challenges, making headlines for its crisis. The company has laid off hundreds of employees and experienced delays in paying remaining workers’ salaries. In response, the startup is reportedly planning to reevaluate its consumer-focused business and shift its focus towards B2B offerings, specifically Dunzo Merchant Services.
Dunzo Notable Clientele and Previous Valuation
Dunzo has built a prominent client base that includes well-known brands like McDonald’s, Licious, and Theobroma, among others. The startup offers valuable services. It received a high valuation of $775 million. This happened during its investment from Reliance Retail in January 2022. Reliance Retail is the largest investor in the startup. They are interested in further investment. This could assist the startup with its current financial challenges. Also, it may help solidify its position in the market.
Ambani’s Potential Lifeline for Dunzo
Mukesh and Isha Ambani may inject Rs 164 crore into Dunzo. It can help the platform with its cash crash and growth strategy. The involvement of high-profile investors like them can impact the company’s future plans. It can also affect its potential success in the grocery delivery app market.
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