BENGALURU: According to market intelligence firm Tracxn, the company secured $75 million in April 2023, and so far, it has raised $497 million and was last valued at $757 million. Founded in 2015, the start-up is backed by Google, Blume Ventures, Alteria Capital and Lightrock, among others.
Reliance Retail holds 25.6% stake in the company, followed by Google at 18.53%. Dunzo competes with Swiggy, Zepto and Blinkit, among others. Dunzo has been struggling to raise funds for many months now.
Anil Joshi, Managing Partner, of Unicorn India Ventures, said the current funding situation is not so good, while investments are happening but not at the enterprise valuation of 2021.
"Considering the correction in valuation, the current performance matrix may not justify investment at higher numbers and hence most of the growth stage companies are finding it tough to raise money at a higher valuation. The same is true for Dunzo and hence the company is required to make operations optimum and take measures to bring the cost down,” he said.
According to him, Dunzo should work on the right costing model to charge the consumer so that they can bring down the burn rate as cash breakeven is the need of the hour.
Currently, the delivery companies are working on a negative margin and don’t have scope for covering the cost in the absence of a product-led model.