According to media reports, the financially stressed quick-commerce startup Dunzo has experienced about five exits from its board of directors over the past two months.
On 3 August, shortly after Ashwin Khasgiwala, Group Chief Of Business Operations at Reliance Retails and Rajendra Kamath, Finance Head at Reliance Retail, walked out from the company, two board members resigned from the board. Reliance Retail is the largest shareholder in Dunzo with a stake of nearly 26 per cent.
Vaidehi Ravindran, a partner at Lightrock India, left the board on 21 August. Co-founder Dalvir Suri also exited the board on 29 August. Moreover, Dunzo Co-founder and CTO, Mukund Jha, left the board on 1 September. Jha and CEO, Kabeer Biswas, do not own any direct shares in the company. Jha is also expected to resign from the startup in the coming weeks, according to media reports.
The startup is currently facing significant cash flow problems and is seeking to raise USD 30 to USD 35 million from existing investors. Reliance Retail, Google, Lightrock, and DS Group are expected to participate in the funding round.
Dunzo recently laid off some of its employees to reduce costs. It is also looking to secure funding to cover outstanding payments and salaries.
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