The Dunzo App and Website are Down While Employees Leave

Nitin Konde, Varun Bhardwaj

Jan 14, 2025 — 3 min read

Dunzo App and Website Go Down Amid Employee Exodus

The website and mobile app of Dunzo, a hyperlocal delivery startup, are unavailable due to continuous issues. The message "{"error":"Something went wrong."} appears on its website. The message "Something doesn't seem right" appears on the mobile app. The app does not presently allow new users to sign in. The software has been unavailable to users in several parts of the nation for a few days. The app and the website are reportedly having some "migration issues," according to a media report, even though Dunzo has not made any public statements on the matter.

However, report further stated that the company might be going through a process called ‘App Migration’. The process of transferring software applications from one environment to another is known as app migration.

More Bad News for Denzo

All of Dunzo's staff have departed the startup, according to the media report. On January 9, a few workers also complained about their unpaid salary to the Bengaluru police station in Indira Nagar against cofounder Kabeer Biswas. According to the lawsuit, Dunzo has failed to pay the salaries of around 400 workers. According to various reports, Biswas is expected to speak with the investigating officer about the situation on January 14. Due to a lack of funds, Dunzo has repeatedly postponed staff salaries over the past 12 months. In addition to not paying salary for November 2024, it postponed paying salaries for June and July for several months.

Due to financial difficulties, Dunzo let go of several employees in 2023 and 2024, and a small number of people left the firm to work for other companies. The most recent development occurs just days after Biswas left Dunzo. He was the sole cofounder still working for the startup. Biswas will join "Flipkart Minutes" to oversee the operations of the e-commerce giant's rapid commerce division.

Denzo Unable to Generate Investments

According to reports, Dunzo has made purchase offers to Reliance Retail, Flipkart, PhonePe, and Swiggy. Additionally, Reliance Retail wrote off its $200 million investment in Dunzo, according to various media reports. When Dunzo was first established in 2014, it provided pick-and-drop services. In 2021, it switched to fast commerce, and in 2022, Reliance Retail provided $240 million in capital.

In order to complete a settlement with Invoice Discounters, the company has asked the National Company Law Tribunal (NCLT) for more time. The underlying financial problems have not been addressed, even though this might provide a brief reprieve.

Some media outlets claim that Dunzo's attorney informed the tribunal that the parties are sincere in their pursuit of settlement negotiations and close to finishing the terms of the agreement. Please give them two weeks. In the meantime, the corporation has barely paid half of its debt, according to the creditor's attorney, who is disputing these assertions. Investors exit, boardroom chaos, and significant leadership changes at Dunzo have further compounded the company's problems. Concerns regarding the startup's future have been raised by the departure of important board members, including those from significant backers LightBox and Reliance Retail. The leadership gap is made worse by the departure of co-founders Dalvir Suri and Mukund Jha.