Exclusive: Dunzo secures funding via convertible notes, lays off 30% of staff

Reliance Retail-backed quick commerce startup Dunzo has secured funding of $75 million through convertible notes, said several people aware of the matter. It is also laying off about 30% or over 300 staff besides planning a shift in the business model, employees were told at a town hall on Wednesday.

About $50 million of the funding is coming from Google and Reliance Retail while other existing investors are putting in the rest. A convertible note is a form of short-term debt that converts into equity, typically during a future financing round, or an IPO. It requires no valuation to be ascribed to a company immediately, and has been used widely by Indian startups over the last few years.