Dunzo is awaiting infusion of first tranche of capital from its investors to make salary payments
The troubled startup told the employees that the first tranche will help it manage salaries of its employees for a couple of months before it closes a funding round in January
The Reliance Retail-backed startup has laid off over 30% of its workforce so far and has also seen exits at managerial level amid the ongoing financial crisis
Hyperlocal delivery platform Dunzo, which is facing a severe financial crisis, has now reportedly failed to clear its employees’ salaries for the month of November.
As per a Moneycontrol report, Dunzo is awaiting an infusion of the first tranche of capital from its investors to make salary payments.
“We have got assurance from our investor that expected funds will be wired to us by early next week. We should be able to release the November salaries as soon as we receive it. With this infusion we should be able to manage salaries for the next couple of months till we close out the round of equity in January,” the startup reportedly told its employees.
This is not the first time that Dunzo has failed to clear the salaries of its employees on time. After delaying the salaries for June and July for months, the startup said it would clear them in November. However, there is no clarity if it has made these payments.
A mail sent to Dunzo seeking information about the latest development and pending salaries of previous months didn’t elicit any response till the time of publishing this story.
Meanwhile, the Reliance Retail-backed startup has laid off over 30% of its workforce so far and has also seen exits at managerial level.
Earlier, the cash-strapped company was said to be looking to raise a funding of $25 Mn-$30 Mn.
“As this (the fresh funding) is based on external factors, we would recommend members to plan for a worst-case timeline of Dec 15, 2023,” Dunzo has now reportedly its employees. “We will continue to put our best efforts to find other alternatives as well. Regret the delay and request your continued support.”
Dunzo’s loss nearly quadrupled in FY23 to INR 1,801 Cr from INR 464 Cr in the previous fiscal year, with operating revenue rising 317% year-on-year (YoY) to INR 226.6 Cr.