Cash-strapped delivery startup Dunzo communicated to its former employees on Friday evening that it is actively developing a comprehensive, long-term business strategy to address outstanding liabilities and fulfill pending salary commitments.
In October last year, the firm backed by Reliance Retail had informed its former employees that salaries for June and July, along with final settlements, would be disbursed by February 2024. The payment will encompass a 12% annual interest calculated on the employee’s tenure of service.
Dunzo will now outline a payment timeline by January 31 as the company formulates a solution over the next couple of weeks, as mentioned in the email.
“As you would recall, Dunzo has always been a transparent organisation and has operated with the absolute best intent for its team members. It is unfortunate that we haven’t been able to meet our financial commitments due to unforeseen business and external funding situations in the recent past. We are extremely sorry for this,” the email noted.
Dunzo’s Partner Store Setback:
In December, several of Dunzo’s partner stores, including Easy Bazar and MK Retail, temporarily went offline as the company delayed payments for grocery orders. They returned online in the same week after the dues were cleared.
The on-demand delivery platform has postponed salary payments on multiple occasions, citing preparations to secure additional funding to meet its payment obligations.
Continue Exploring: Awaiting investor funds, Dunzo yet to disburse November salaries
In September, Dunzo collaborated with payroll financing company OneTap to disburse salaries for existing employees for the month of August.
Read More: Dunzo turns to payroll financing app OneTap for August salary payments amid financial strain
Earlier in August, SnackFax had reported that Dunzo was scaling down its quick commerce operations under Dunzo Daily massively to cut down cash-burning propositions and focus on more lucrative verticals. A Dunzo spokesperson later confirmed that the company is in the process of moving to a partner store format.
Read More: Dunzo to lay off 150-200 employees despite fresh $35 Million funding: Reports
After shutting down the majority of its dark stores in major cities, including Bengaluru, the company collaborated with several offline retail stores like MK Retail, Easy Bazar, Pristine Supermarket, and Deepa Retail to fulfill quick commerce orders.
In October, Dalvir Suri, a Co-founder of Dunzo, resigned from his position. Suri played a pivotal role in introducing new business lines, including Dunzo Merchant Services (DMS).
Read Other Articles: Dunzo Co-Founder Dalvir Suri announces departure after six years of service