Dunzo is about to get a final nod from its board of directions to seek the approval to raise up to $35 million through a rights issue at a reduced valuation.  

However, according to media reports, this criticsl round of financing would slash the company’s valuation to just $200 million which is one fourth of its peak value of $800 million. According to reports, A few of the existing investors have committed around $10-15 million in capital at the reduced valuation. 

CEO Kabeer Biswas is expected to seek clearance in a meeting scheduled later this week from its top shareholders like Reliance Retail, Google etc. 

According to media reports, the current commitment is at around a $200 million valuation. That’s also the blended average for most investors in the firm before it was valued at close to $800 million. This money is also committed to the fact that Dunzo will become a B2B company for all practical purposes doing delivery for business customers. 

This comes when the company is already cash strapped and is facing several issues like top management exits. The quick commerce start-up laid off several employees in three rounds of lay0ffs and has delayed salaries that await clearance in January-February of 2024. 

According to recent company filings, the major people to step down from the board of directors are Ashwin Khasgiwala, group chief of business operations at Reliance Retail, Rajendra Kamath, finance head at Reliance Retail, Vaidhehi Ravindran, a partner at Lightrock India, Dalvir Suri, co-founder at Dunzo and in a fresh exit, Mukund Jha, co-founder and chief technology officer at Dunzo has also stepped down.