New Delhi, Aug 18 (IANS): Homegrown quick-grocery delivery provider Dunzo, mired in controversy for not paying employees their salaries for months, is reportedly in advanced talks to raise between $80-100 million in its series G round.

Bengaluru-based hyperlocal delivery startup Dunzo is in talks to raise funds from its existing investors, including Lightbox and Lightrock, reports leading startup coverage portal Inc42.

The funding round “mostly comprises equity funding and can have a small debt element”, the report mentioned.

Dunzo was yet to comment on the report.

The fund-raise, if it happens, can help the startup pay the salaries as well as clear pending dues of its vendors.

Dunzo has received legal notice from at least seven companies since March this year.

It had reportedly received legal notices from Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo and Glance.

Overall, Dunzo's outstanding vendor debts total approximately Rs 11.4 crore, nearly double of Rs 5-6 crore previously estimated.

The quick-grocery delivery provider Dunzo has reportedly promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June.

In addition, the startup assured them that it was on track to pay off all outstanding debts by September 4, according to earlier reports.

The company was supposed to clear all pending dues by July 20, but an email was sent out, pushing the deadline to September 4.

"Thank you for your patience and continued support. We understand the inconvenience this (delay in salaries) has caused and want to ensure that we provide the possible support for the delay," Dunzo's payroll team said in an email to employees.

"There will be interest paid of 12 per cent per annum," it added.