Dunzo may get $30-35 million; proposes to cut fixed costs, reduce burn rate further

economictimes.indiatimes.com:

Dunzo may only be able to secure $30-40 million in new funding, and that, too, with strings attached. The funding will come with onerous terms in favour of existing investors on liquidity preference, people aware of the matter said. A board meeting is expected to be held at the end of the week to approve the funding.

To secure this much needed cash, Dunzo has also proposed to reduce its burn to $300,000 a month with a smaller team of just around 200, sources aware of the plans said. Until September, the cash-strapped company had a monthly burn rate of about $600,000. At the start of the year, Dunzo had more than 1,000 employees but has since undertaken three rounds of layoffs.

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Dunzo, which is also backed by Google, will focus on its B2B vertical, Dunzo Merchant Services, which will account for 70-80% of its business, with the rest being consumer-focused. Grocery delivery will only take place through third-party stores while pick-up-and-drop services will continue.