Dunzo, the hyperlocal delivery platform grappling with a significant financial downturn, has allegedly been unable to disburse salaries to its employees for the month of November.
According to a Moneycontrol report, Dunzo is anticipating the receipt of the initial installment of capital from its investors to fulfill 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.
Dunzo has a history of repeatedly falling behind schedule in disbursing employee salaries. Despite announcing plans to settle delayed June and July payments in November, it remains uncertain whether these payments have been successfully processed.
An email inquiry sent to Dunzo regarding the current status and outstanding salaries from previous months went unanswered.
At present, the startup supported by Reliance Retail has reduced its workforce by more than 30% and has witnessed departures at the managerial level.
Earlier, the cash-strapped company was reported to be exploring the possibility of raising $25 million to $30 million in funding.
“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.”
Read More: Dunzo may get $30-35 Million in funding, aims to cut fixed costs and reduce burn rate
In FY23, Dunzo witnessed a nearly fourfold increase in its losses, reaching INR 1,801 crore from INR 464 crore in the preceding fiscal year. Concurrently, the operating revenue surged by 317% year-on-year (YoY) to INR 226.6 crore.
