According to the individuals, who asked to remain anonymous since the information is confidential, Reliance Retail and Google, the company's two current sponsors, are among those in negotiation to invest in the second round. According to the sources, the funding discussions are now progressing mostly with existing sponsors.
According to the Indian publication Economic Times, the business has been seeking funding for a number of months and was hoping to raise at least $70 million and as much as $150 million. Dunzo's co-founder and CEO, Kabeer Biswas, declined to comment. Requests for comment from Google and Reliance Retail were not immediately fulfilled
Dunzo is in direct competition with Swiggy's Instamart, Zomato's BlinkIt, Tata's BigBasket, and YC Continuity's Zepto. These businesses are all vying for a piece of India's retail market, which brokerage company Bernstein predicts could reach over $800 billion by 2025.
In light of the failing global economy, it should come as no surprise that delivery companies, which are notoriously among the most cash-hungry enterprises, are finding it particularly difficult to attract new financing rounds.
Karthik Gurumurthy, the leader of Swiggy's Instamart division, said on Friday that he is resigning from the position. According to his LinkedIn article, developing Instamart has been "arduous with a lot of tradeoffs on physical and emotional welfare.
It's a dynamic that's happening all across the world. Three businesses now dominate the rapid delivery sector in Europe. Instacart's internal valuation has decreased from $39 billion in March 2021 to $10 billion today.