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Lightbox leaves Dunzo Board amid ongoing financial challenges

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Dunzo, the Reliance Retail-backed e-commerce and on-demand delivery platform, has seen investor Lightbox exit its board. This marks the departure of Dunzo’s third-largest investor, who held an 11.1% stake in the company. Lightbox’s exit follows that of major stakeholders Reliance Retail and Google, who left the board last year.

Lightbox co-founder and partner Siddharth Talwar represented the company on Dunzo’s cap table until his departure from the venture capital firm in March 2024. Despite his departure, Lightbox has not named a replacement to represent them on Dunzo’s board.

Reliance Retail, which currently holds a 27.6% stake in Dunzo, and Google, with a 19.3% stake, have both vacated their board positions in August 2023. Reliance Retail’s Ashwin Khasgiwala and Rajendra Kamath and Lightrock’s Vaidehi Ravindran have also left their positions on the board at about the same time. Additionally, Dunzo co-founders Dalvir Suri and Mukund Jha have left the company and the board.

Kabir Biswas, founder and CEO of Dunzo, and Hong Jin Kim, managing director of STIC Investments, are the remaining board members, according to market research platform Tracxn.

Founded in 2014, Dunzo was an early entrant into the hyperlocal delivery and quick commerce market. Despite initial success, the company faced significant challenges in raising follow-on funding. Recent filings with the Ministry of Corporate Affairs revealed that Dunzo delayed payments of more than ₹40 crore to more than 100 vendors, including related entities, citing lack of funds. The company, which has raised nearly $449 million in multiple equity rounds, was valued at $744 million during its latest funding round in April 2023, according to Tracxn.

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In addition to delaying supplier payments, Dunzo has delayed paying staff wages and implemented major cost-cutting measures over the past year in an effort to manage its financial woes.

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