Dunzo likely to raise up to $100 M via convertible notes: Report

Reliance-Retail backed Dunzo is likely to raise $70 million to $100 million (up to Rs 825 crore) through convertible notes to scale its quick commerce vertical Dunzo Daily, said a report in Economic Times.

The Bengaluru-based company is still in talks to add a couple of more backers to increase the size of the funding round. Reliance Retail, which is the single largest investor in Dunzo with close to 26% stake, is likely to cut a small cheque. Investors such as Abu Dhabi Investment Authoritymay also join the financing round, the report said.

This development comes a month after the firm raised Rs 50 crore ($6.2 million) via debentures from Blacksoil India.

YourStory had reached out to Dunzo for a response, but the company declined to comment.

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The startup was initially looking to raise at least $150 million by selling a stake but later decided to opt for convertible notes to help sustain valuation amid a tough funding environment, said the report.

Reliance Retail invested close to $240 million in January last year, valuing the e-grocery firm at $775 million.

Dunzo is looking at a public listing in three years, the company's Co-founder and CEO Kabeer Biswas had said last year.