Dunzo to raise $150-200 million from sovereign wealth funds based in Middle East: Report

It’s a tough time for start-ups to receive fresh funds, and the number of funding rounds is also reducing almost each month since the calendar year started. So, companies have no option but to cling to valuations at which they last raised funds. Hyperlocal delivery start-up Dunzo is planning to raise $150-200 million from Middle East-based sovereign wealth funds at a valuation unchanged from its previous funding round, according to a report in The Financial Express. People aware of the development told the media outlet that it is unlikely that the largest shareholders of Dunzo, Reliance Retail and Google, will be participating in this capital infusion. Reliance Retail and Google hold about 25.58 per cent and 18.54 per cent stake in Dunzo, respectively. The Abu Dhabi Investment Authority (ADIA) is expected by most to lead the round. ADIA was formed in 1976, and it is a global investment institution that makes investments in funds on behalf of the Abu Dhabi Government. There are chances that Dunzo was also in talks with Abu Dhabi Developmental Holding Company (ADQ), according to the sources. Dunzo offers the service of quick delivery of items like groceries across 10 cities in India. Its total revenue rose to Rs 67.7 crore in the financial year (FY) 2022, up from a revenue of Rs 29.4 crore in the previous fiscal. The company’s consolidated losses increased from Rs 229 crore in FY21 to Rs 464 crore in FY22 because of the doubling of expenses. In FY22, Dunzo saw a negative operating cash flow of Rs 603 crore, from Rs 209 crore in FY21. The hike in expenses most likely caused the company to end up using most of the amount of $240 million that it raised in January from Lightbox, Lightrock, Reliance Retail, Alteria Capital, 3L Capital, and others. The start-up has raised over $400 million from its investors so far. In its attempt to go beyond delivering vegetables and fruits, Dunzo has commenced the quick delivery of books as well. It has recently launched the novel “War of Lanka” authored by Amish Tripathi on the platform. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.