Dunzo is in trouble again. The cash-strapped company has received legal notices from its vendors asking the company to pay up dues, at a time when the startup is already struggling to keep its core operations afloat, reported Moneycontrol.
Dunzo owes its advertising agency, Cupshup, Rs 1 crore. Cupshup has sent a legal notice to Dunzo. The startup has also received legal notices from Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited (FBI), Koo and Glance for outstanding payments, stated the report. The company’s outstanding vendor debts stand at Rs 11.4 crore, and it owes over 2 crores to Clover Ventures which the latter has asked to settle.
Earlier in July 2023, the company announced its third round of layoffs which impacted around 150-200 employees. Grappling cash crunch, this move has been highlighted as a step to reduce expenditure internally by 30 percent to 40 percent. Further, the salaries of the staff too have been deferred, the pending salaries of June along with July and August will now be cleared on September 4.
Founded in 2014, Dunzo has so far raised close to $500 million from Reliance Retail, Google India, Lightrock, Lightbox, Blume Ventures and several other marquee investors. Reliance Retail is the largest shareholder with a 25.8 percent stake in the company, and Google is the second-largest with around 19 percent ownership in Dunzo, according to Tracxn, a private markets information provider.
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