Dunzo defers salary payments, again
Google-backed quick commerce startup Dunzo on Wednesday told employees that pending salaries since June have now been deferred till September.
This comes a fortnight after the firm had said that June salaries will be paid out by 15 July.
The payroll team said that salary payments will be made by 4 September.
At this stage, we need to focus on streamlining our cash flow so we can build a more sustainable business for the future,” the company’s email to its employees said.
Mint has reviewed a copy of the letter.
Last week, Dunzo, facing cash crunch, capped salary payouts to ₹75,000 each for June.
Around 500 employees were said to be affected by the move, which accounts for 40-45% of its workforce.
It had fired around 30% of its workforce in April.
According to the letter, team members who were expecting balance payouts of their June salary during this week will have to wait it out till September as things get increasingly uncertain at the Reliance Industries-backed company.
The pending salaries for June will now be paid on 4 September 2023. Additionally, the July salary for all team members will be paid only on 4 September along with the August salary.
While we have set 4 September as the date for all pending salary payouts, we are working to resolve this issue at the earliest to minimize the impact on our team members,” the letter said.
On queries from Mint, a company spokesperson refused comment.
The delay comes even as the company has raised $75 million in debt funding through convertible notes.
Apart from Google and Reliance, it counts Lightbox, Evolvence, Alteria Capital, among others, as its investors.
A person aware of the company’s plans said that it was in the process of raising a new funding round of around $50 million from new investors.
Amid larger funding crunch hitting high-growth startups, those with most cash burn seem to be out of runway.
While most companies have worked towards curtailing the burn by pivoting or realigning business to achieve stronger unit economics, some seem to be struggling.
Dunzo is said to be moving towards an asset light model where it is shutting down half of its dark stores and maintaining only those that have stronger unit economics.
Bylivemint
