NCLT gives Dunzo two weeks to settle dues with Betterplace Safety Solutions

livemint.com:

Flipkart has FOMO? Zepto and Blinkit are changing the e-commerce giant Separately, one of Dunzo’s financial creditors has also filed an insolvency application against the company. Dunzo said, however, that it was close to reaching a settlement with this lender. In November, Dunzo’s operational creditor Velvin Group, an Indian manufacturer of sustainable packaging solutions, initiated insolvency proceedings against the company.

Its plea was later admitted by the Bengaluru NCLT. More recently Lightbox, a venture-capital firm that holds 11.1% stake in the delivery firm, gave up its board seat at the company. Siddharth Talwar, a former co-founder and partner at Lightbox who held the board seat at Dunzo, left the venture-capital firm in March.

Earlier this month we reported that Dunzo is in the final stages of closing a “transaction" with investors that the cash-strapped startup has been looking to raise for at least a year to clear pending liabilities, including salaries. The arrangement is also expected to “find safety for the company into perpetuity", co-founder and chief executive Kabeer Biswas told employees in an internal communication, which Mint has seen. According to a person aware of the developments, Dunzo is in late-stage talks to raise $22 million-$25 million in a mix of equity and debt from a clutch of new and existing investors.