The homegrown quick-grocery delivery provider, Dunzo, is poised to raise $35 million in funding from existing supporters like Reliance Industries and Google, along with new investors. However, due to a severe cash crunch, the company is reportedly in the process of laying off at least “150-200” more employees.
According to multiple reports, Dunzo is likely to trim its workforce further by around 30-40 per cent.
The company has reportedly informed impacted employees that they would receive their full and final settlements in January.
The latest layoffs were officially communicated to the employees during a brief meeting. This marks the third round of job cuts this year for the startup, with nearly 400 employees having been let go in total.
Earlier this month, Dunzo extended the delay in disbursing salaries to its employees for the months of June and July. This delay has now been pushed to November due to the company’s ongoing financial constraints.
Read More: Struggling Dunzo defers overdue salaries again, hints at further layoffs
In a cost-cutting move, the startup’s Co-Founder and CEO, Kabeer Biswas, has indicated the possibility of vacating its Bengaluru office.
Biswas reportedly told employees that their pending payouts for June and July will now be cleared in November.
Dunzo previously postponed salary payments to the first week of October due to its inability to secure funding.
Read More: Dunzo’s salary woes continue: Employee payments deferred again, new deadline set for October
The company had additionally committed to providing employees with a 12 percent annual interest rate on the salary portion that was withheld since June.
Read More: Dunzo commits to pay 12% annual interest on withheld salaries amid financial challenges
To date, the company has secured close to $500 million in funding, with roughly $300 million of that amount being raised since early 2022.