Village Voice News

Cash-strapped company sponsored by Mukesh Ambani that can’t pay staff might be bought for Rs 265243 crore

<p>Maruti Suzuki supported a cash-strapped startup. Dunzo has been experiencing a problem for some time now. The rapid delivery network, backed by industry titans like Google, Reliance Retail, and others, has been unable to pay its former workers’ wages. The financially struggling firm has already lost a number of its senior executives, yet it is still making headlines for all the wrong reasons. Startups financed by Mukesh Ambani often become market leaders, but Dunzo isn’t one of those companies. Dunzo’s issues seem to be getting worse, and it seems like Flipkart, the massive Indian e-commerce company, could buy it. Flipkart is reportedly in discussions to buy Dunzo, according to a TechCrunch report. The intricacies of Dunzo’s ownership structure are said to be one of the main obstacles impeding the takeover negotiations.</p>
<p><img decoding=”async” class=”alignnone wp-image-427300″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-cash-strapped-company-sponsored-by-mukesh-ambani-that-cant-pay-staff-might-be-boug-422×750.jpg” alt=”theindiaprint.com cash strapped company sponsored by mukesh ambani that cant pay staff might be boug” width=”1073″ height=”1907″ title=”Cash-strapped company sponsored by Mukesh Ambani that can't pay staff might be bought for Rs 265243 crore 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-cash-strapped-company-sponsored-by-mukesh-ambani-that-cant-pay-staff-might-be-boug-422×750.jpg 422w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-cash-strapped-company-sponsored-by-mukesh-ambani-that-cant-pay-staff-might-be-boug-576×1024.jpg 576w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-cash-strapped-company-sponsored-by-mukesh-ambani-that-cant-pay-staff-might-be-boug-150×267.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-cash-strapped-company-sponsored-by-mukesh-ambani-that-cant-pay-staff-might-be-boug.jpg 720w” sizes=”(max-width: 1073px) 100vw, 1073px” /></p>
<p>Flipkart, which is estimated to be worth over Rs 265243 crore, is allegedly dubious about the Dunzo acquisition since Mukesh Ambani’s Reliance Retail is involved. Recall that Mukesh Ambani’s company invested around Rs 1641 crore to purchase a quarter of Dunzo. It is important to remember that Dunzo has previously undertaken takeover conversations with a number of firms, including Tata and Zomato, despite the company’s denial of the allegation and assertion that it is on track to achieve free cash flow break even in March.</p>
<p>Over the course of the previous year, Dunzo has repeatedly postponed paying its employees. In FY23, it reported a loss of Rs 1,800 crore, up 288 percent from the year before. The firm has also suffered from the departure of a number of senior executives, including its head of finance and co-founders.</p>
<p>Established in 2014 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, the firm garnered attention from major players such as Google and Lightbox and secured funds via many rounds of fundraising.</p>