The Bengaluru-based company Dunzo is attempting to find comfort in what is normally a financial winter for young companies by entering into late-stage negotiations to acquire roughly $50 million in a fresh financing round.

The sources, who asked to remain anonymous since the information is confidential, said that Reliance Retail and Google, two current backers of Dunzo, are among those in talks to participate in the new round. According to the sources, existing sponsors are currently playing a major role in the funding discussions.

The business has been attempting to raise money. It was hoping to earn at least $70 million and as much as $150 million. Dunzo's co-founder and CEO, Kabeer Biswas, declined to comment. Requests for response from Google and Reliance Retail were not immediately entertained.

Dunzo faces competition from Swiggy's Instamart, YC Continuity-backed Zepto, Tata-owned BigBasket, and Zomato's BlinkIt, all of whom are vying for a piece of India's retail sector, which brokerage company Bernstein predicts could reach over $800 billion by 2025.

Predictably, delivery startups, which are frequently among the most cash-hungry enterprises, are finding it particularly difficult to attract new financing rounds in light of the faltering global economy. This dynamic is present all around the world. The market for speedy delivery in Europe has been reduced to only three businesses. From $39 billion in March 2021, Instacart's internal valuation has been reduced to $10 billion.