Dunzo co-founder and CEO Kabeer Biswas is set to exit the troubled hyperlocal delivery startup, according to a report in Moneycontrol.
Biswas is exiting the firm after a decade-long stint, marking the end of founder presence at the company, which has been battling severe financial crisis for over 18 months now.
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Biswas, would be the last of the founding team to leave, following earlier exits by co-founders Mukund Jha, Dalvir Suri, and Ankur Agarwal. The development comes at a time when the Reliance Retail-backed company has been unable to clear pending salaries, statutory and vendor dues for over a year and a half.
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In August last year, Biswas had admitted to his employees that Dunzo had hit a roadblock in securing promised funding, in a letter reviewed by FE. The company had been seeking an investment of around $20 million from Reliance Retail to tide over its cash crunch, while parallel efforts to raise $22-25 million through external investors had also stalled as potential investors remained unconvinced about its revival prospects.
A month prior this, Biswas had written to employees stating that Reliance Retail agreed to infuse funds into the company and claimed that the fresh capital will be deployed to clear the pending salaries and other dues owed to former and current employees as well as vendors. In August, however, he admitted that the company had hit a roadblock, while also urging employees not to take legal action. He stated that such efforts would “just delay the ongoing process”.
The financial crisis had led to all major investors vacating their board positions in the company last year. Neither Reliance Retail, which holds a 25.8% stake, nor Google, with its 20% ownership, currently have board representation. Lightbox who holds a 11.1% stake had also vacated its board position in the company. Co-founders Suri and Jha also departed from their board positions before leaving the company.
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