In another major shakeup within the troubled Dunzo, Sudharshan N, the head of finance, has parted ways with the quick commerce startup.
Sudharshan’s LinkedIn profile indicates that he concluded his role as the head of finance at Dunzo in September 2023, following a year-long tenure with the company. This departure coincides with a period of turmoil at the quick commerce startup, characterized by financial challenges and delays in employee salary disbursements.
The company’s financial leadership transition remains uncertain.
Sudharshan’s time at Dunzo, which lasted only 14 months, marks the briefest chapter in his career. Previously, he dedicated almost four years to the prominent foodtech company, Swiggy, and nearly eight years at Ernst & Young (EY). An alumnus of Bangalore University, Sudharshan holds an undergraduate degree in commerce and is a certified chartered accountant (CA).
Significantly, the departure occurs during a period when Dunzo has faced financial challenges and has been actively seeking investment capital. Just last week, there were reports that the company was preparing to seek board approval for a rights issue, aiming to secure up to $35 million, but at a considerably reduced valuation. The startup had apparently been intending to secure the funds with a valuation of $200 million, a substantial decrease from its earlier valuation of $800 million.
Sudharshan was at the heart of the startup’s fall from grace, overseeing delayed salaries and missed payment deadlines due to cash flow issues. Despite pledging multiple times to release pending salaries that have been held since July, the startup has now pushed the deadline all the way to January-February 2024.
In addition to Sudarshan, Dalvir Suri, one of the Co-Founders of Dunzo, has departed from the company. Reports emerged last week indicating that another Co-Founder, Mukund Jha, is currently in the process of leaving the startup. Furthermore, Ashwin Khasgiwala and Rajendra Kamath from Reliance Retail, along with Vaidehi Ravindran from Lightrock India, have resigned from Dunzo’s board.
Read More: Dunzo Co-Founder Dalvir Suri announces departure after six years of service
Also Read: Dunzo’s leadership exodus continues: Co-Founder Mukund Jha steps down
Additionally, there have been significant departures from various teams, such as the departure of Akansha Kumari, who served as the head of the product team. These exits have contributed to high attrition rates, which have been further exacerbated by extensive layoffs that have taken place over the past year.
In the meantime, it’s been reported that the company has chosen OneTap, a payroll financing company, to ensure timely wage payments and mitigate the salary crisis.
Read More: Dunzo turns to payroll financing app OneTap for August salary payments amid financial strain
The unfolding saga began when it became apparent that the quick-commerce giant had accumulated cumulative losses exceeding $150 million, despite generating only $12 million in revenue between 2018 and 2022.
With losses steadily depleting the $240 million in funding raised from Reliance Retail, the company initiated a restructuring initiative. This involved reducing the workforce and shifting towards a hyperlocal model, all while competitors like Blinkit, Zepto, and Swiggy Instamart surged ahead in the market.
As the company readies itself for more financially constrained periods, the question remains whether it can successfully avert the ongoing crisis.