In the midst of a financial squeeze, Dunzo, the quick commerce platform, has once more decided to postpone salary disbursements to its employees, this time by more than a month.
According to an internal email circulated among employees, Dunzo has announced a change in the schedule for the remaining portion of June salaries. Previously expected to be credited by July 20, the company now plans to disburse these payments in early September.
“For those team members who were expecting the balance payouts of their June salary during this week, we regret to inform you that this has been delayed. The pending salaries for June will now be paid on September 4, 2023,” the email said.
“Additionally, the July salary for all team members will be paid only on September 4 along with the August salary. While we have set September 4 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 startup added.
Dunzo has chosen not to provide a comment regarding the recent development.
Last week, it was reported that the Bengaluru-based startup backed by Reliance has implemented a deferral of salary payments for its managers. Approximately 500 employees, constituting around 50% of the total workforce, had their June salaries postponed. Notably, Dunzo, the name of the startup, chose to put the salaries of employees earning above INR 75,000 per month on hold.
Read More: Hyperlocal commerce player Dunzo defers salaries for some employees, cites cash-flow constraints
Amid these problems, a wave of resignations has emerged in the past few days, as confirmed by sources. Adding to the company’s previous struggles, Dunzo had to make the tough decision in April of this year to lay off around 300 employees, which accounted for 30% of its total workforce.
Read More: Dunzo downsizes workforce by 30% to cut costs as it secures $75 million in convertible note funding
According to recent reports, Dunzo is currently seeking an additional cash infusion of $20 million from its major shareholder, Reliance Retail.
Read More: Dunzo seeks USD 20 Million in funding from Reliance Retail amid cash flow challenges
Earlier this year, there were reports stating that the startup was engaged in discussions to secure funding of up to $100 million (INR 825 crore) by issuing convertible notes.
Dunzo is undergoing a significant business transformation, shifting away from its previous focus on dark store-centric quick commerce to a new approach. The company is now concentrating on collaborating with larger supermarkets and grocery stores, wherein they will join the platform on a revenue-sharing basis.
