26, February, 2024
HomeBusinessDunzo Grapples with Cash Woes, Postpones November Salaries and Delays Dues

Dunzo Grapples with Cash Woes, Postpones November Salaries and Delays Dues

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Dunzo, the Google-backed hyperlocal e-commerce platform, is reportedly facing a severe cash crunch, resulting in the delay of November salaries for its employees, according to sources.

The company, which recently undertook substantial layoffs amounting to over 30% of its workforce, has not cleared dues for existing staff and has deferred full and final payments for those laid off. Additionally, Dunzo is contemplating the closure of 50% of its dark stores as part of its ongoing cost-cutting measures.

Read Also | Infosys Announces Employee Salary Hikes from Nov 1; Shifts Focus to Skill Development

In a bid to address financial challenges, Dunzo entered a partnership with OneTap, a revenue financing firm, in August. Despite fundraising efforts, the company’s financial stability has been questioned by its auditor, Deloitte, citing a significant increase in net loss to ₹1,802 crore in FY23.

The situation is further complicated by the departure of co-founder Dalvir Suri in October. In an effort to streamline costs, Dunzo migrated employee accounts from Google to Zoho Workspace last month, following the closure of its Bengaluru office earlier this year.

Read Also | Delhi Primary Schools Extend Closure Till November 10 Due to Rising Pollution – Online Classes Recommended for Senior Classes

These developments raise concerns about Dunzo’s ongoing financial viability as it navigates a challenging landscape in the hyperlocal e-commerce sector.

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