Due to a Serious Liquidity Situation, Dunzo Is Laying Off an Additional 150-200 Workers

Nitin Konde, Apoorva Bajj

Sep 3, 2024 — 2 min read

Due to a Serious Liquidity Situation, Dunzo Is Laying Off an Additional 150-200 Workers

Amid a severe liquidity constraint, the domestic quick-grocery delivery service Dunzo is reportedly laying off at least "150-200" additional staff. The company is planning to raise $35 million in capital from existing supporters such as Reliance Industries and Google in addition to new investors. There have been various reports that indicate that Dunzo is likely to reduce its employment by approximately thirty to forty percent or more.

There have been reports that the corporation has informed the affected employees that they will receive their complete and final settlements in January. A brief meeting was held to officially tell the staff members of the most recent round of layoffs. Between the two waves of job cuts that have taken place so far this year, the startup has already terminated approximately 400 employees.

Delay in Salaries

In a continuous shortage of funds, Dunzo decided to postpone the payment of salaries to its staff members for June and July until November.

Kabeer Biswas, the co-founder and CEO of the business, has stated that the company may also consider closing its office in Bengaluru to save expenses. According to reports, Biswas informed the staff that their outstanding payouts for June and July will now be cleared in November.

Earlier, Dunzo postponed the payment of salary until the first week of October because it was unable to raise sufficient funds. Additionally, it had committed to paying employees a 12% annual interest rate on the salary component that it had withheld from June. A total of around $300 million has been brought in by the company since the beginning of 2022, bringing the total amount raised to nearly $500 million.

About Dunzo

Dunzo is an Indian on-demand delivery service that focuses on providing local food. With low delivery prices, it delivers anything and everything as needed. If a person happens to leave some important documents at home, Dunzo can deliver them to his workplace. Apart from that, Dunzo can go shopping for individuals if they are ever in a jam and can't make it to the mall to buy a t-shirt.

There are several eateries, apparel boutiques, and general merchandise establishments that Dunzo has partnered with. At this time, it is offering its services in Bengaluru, Delhi, Gurugram, Pune, Chennai, Mumbai, Jaipur, Noida, and Hyderabad. Startup Dunzo provides a hyper-local demand delivery service; its parent business is Dunzo Digital Private Limited. It is registered with the Registrar of Companies in Bangalore, where it was established on July 8th, 2014 through incorporation.