Following salary delays, homegrown quick-grocery delivery firm Dunzo will raise $35 million (Rs 290 crore) in capital from existing supporters such as Reliance Industries and Google, as well as new investors, according to a media source. The exact parameters of the new funding, including valuation, could only be ascertained after some time. Still, Dunzo’s value is likely to go below $800 million.
The company has raised about $500 million, roughly $300 million since early 2022.
According to the article, the corporation seeks to escape a liquidity constraint. It has not paid workers’ salaries and vendor bills on time since June. Layoffs and corporate restructuring have also occurred. According to the report, if the fresh round closes this week, the company can pay staff and, to some extent, streamline cash flow and operations.
Dunzo delayed its employees’ June and July salaries.
Earlier last month, Dunzo delayed its employees’ June and July salaries again, this time until November, citing an ongoing cash crunch. According to Kabeer Biswas, the startup’s co-founder and CEO, the company may also close its Bengaluru headquarters to save money. Biswas reportedly informed employees that their delayed June and July payouts would now be processed in November. Due to a lack of funds, Dunzo had already delayed salaries until the first week of October. It had also guaranteed employees a 12% annual interest rate on the wage component it had withheld since June.
Dunzo is set to reduce its employment by 30-40%: Layoffs.
According to several reports, Dunzo is set to reduce its employment by 30-40%. According to reports, the corporation informed affected employees that they would get their full and final payments in January. In a brief meeting, employees were officially told of the recent layoffs. So far this year, the business has laid off over 400 employees in two rounds of layoffs. Earlier last month, Dunzo delayed its employees’ June and July salaries again, this time until November, citing an ongoing cash crunch.
According to Kabeer Biswas, the startup’s co-founder and CEO, the company may also close its Bengaluru headquarters to save money. Due to a lack of funds, Dunzo had already delayed salaries until the first week of October. It had also guaranteed employees a 12% annual interest rate on the wage component it had withheld since June. The company has raised about $500 million, roughly $300 million since early 2022.
Written by Preeti Anand
