Decoding Dunzo News Today

The new year has begun on a sombre note for people working in large and well-capitalised startups as companies like Swiggy, Flipkart, and Paytm are laying off a sizable chunk of their teams.

The digital lending sector in India is experiencing an inflection point after years of challenges. Industry-level NPAs are decreasing, credit demand is increasing, and investors are showing interest in the sector again. Fintechs have dominated the unsecured lending space, with the market share of fintech lenders in the personal loans sector increasing from 13% in 2018 to 47% in 2023.

This comes at a time when the Reliance Retail-backed firm has been struggling to manage its cash flow and has several dues pending towards vendors as well as staff salaries.

Ecommerce discounts and promotional offers came down on the third day of the biggest annual online festive sales, as brands and online sellers over achieved their targets in sales by value compared to the year-ago period. This and more in todays ETtech Morning Dispatch.

Dunzo is seeking approval to raise $35 million via a rights issue, but some of its investors feel the cash-strapped startups valuation be slashed to about $200 million for the financing to happen. This and more in todays ETtech Morning Dispatch.

While a few of the existing investors have committed around $10-15 million in capital at the reduced valuation, the companys board is yet to clear the proposal.

Quick commerce startup Dunzo has experienced several board of directors exits over the past two months, reportedly due to cash-flow issues and pending dues. The exits are said to be temporary, with board members potentially returning after a planned funding round and dues are resolved.

Beleaguered quick commerce startup Dunzo, which has been scrambling to lock in some desperately-needed funding, has seen five exits from its board of directors over the past two months.