Homegrown quick-grocery delivery provider Dunzo, initially grappling with fund-raising difficulties and subsequently deferring employee salary payments, has now decided to implement a “batch-wise” approach to disbursements, further extending the delay.
Sources have reported that the quick-grocery delivery provider failed to commence salary disbursements on September 4, resulting in another delay in paying some of its employees.
“Due to certain procedural requirements, we have to do this batch-wise. It may take an additional day or two for us to facilitate this transfer for everyone,” Dunzo told employees in an email.
“Rest assured you will receive your August 2023 salary within this week without fail,” according to the email.
In the previous month, it was reported that Dunzo had postponed salary payments to the first week of October due to fundraising challenges. This delay came after the startup had initially pledged to disburse salaries on September 4, shifting the payment date from the original target of July 20, as reported by Money Control.
Read More: Dunzo’s salary woes continue: Employee payments deferred again, new deadline set for October
“We sincerely apologise for this delay. Ensuring that you receive your due compensation as early as possible is our top priority. Please be assured that we are doing everything to make this happen, and we are confident that there will be no further delays after this,” according to an earlier email from the startup.
Furthermore, Dunzo had assured its employees that it would provide a 12 percent annual interest rate on the withheld salary portion from June.
Read More: Dunzo commits to pay 12% annual interest on withheld salaries amid financial challenges
In August, it was reported that Dunzo was in advanced negotiations to secure funding in the range of $80-100 million for its Series G round, primarily from existing investors such as Lightbox and Lightrock. Reports indicate that this funding round would primarily consist of equity financing, with a potential small debt component.
Read More: Dunzo navigates series G funding talks amid controversy, eyes $100 Million investment