Dunzo, the Indian quick commerce startup, continues to grapple with challenges. Just one day after the company officially announced the departure of Co-Founder Dalvir Suri, fresh reports have emerged regarding the exit of yet another Co-Founder and Chief Technology Officer, Mukund Jha.
A Dunzo spokesperson, in their statement, neither affirmed nor refuted the reports. Instead, they stated, “Mukund remains an integral part of Dunzo’s leadership team. While we are restructuring the org with new leaders driving key mandates, Mukund will continue to be an important part of the strategic leadership team guiding and directing Dunzo’s future roadmap.”
The possibility of Jha leaving has not been officially disclosed within the startup. As per a report by Moneycontrol, only a limited number of employees have been apprised of this situation. The report indicates that Jha has stepped back from daily operations, and an official announcement regarding his position may be anticipated in the upcoming weeks.
Both Jha and Suri have also resigned from their positions on the board of the quick commerce startup.
In addition, a report from The Morning Context mentioned that a number of company board members have recently resigned, including Vaidhehi Ravindran from Lightrock and Rajendra Kamath and Ashwin Khasgiwala from Reliance Retail.
Following these changes, the startup’s board now comprises only three members: Dunzo CEO Kabeer Biswas, Siddharth Talwar from Lightbox, and Hongjim Kim from STIC Investments.
Dunzo initially had four Co-Founders, but following the departure of two, only Biswas and Ankur Aggarwal remain with the company. It’s worth noting that among the four Co-Founders, only Biswas holds equity in the company, while the others receive fixed salaries.
Jha’s exit coincides with Dunzo’s efforts to secure funding and raise capital in the range of $25 million to $30 million to sustain its operations. There are indications that Reliance Retail may also consider boosting its ownership stake in the company during this period.
Since its inception in 2015, Dunzo has secured approximately $500 million in funding from prominent investors such as Reliance, Google, Lightrock, Lightbox, Blume Ventures, and various others. Reliance holds the largest share, accounting for 25.8% ownership in the company, followed by Google as the second-largest shareholder, with approximately 19% ownership in Dunzo.
In the midst of a severe liquidity crunch, Dunzo has been deferring employee salaries for an extended duration. The company has also undertaken several rounds of layoffs, and CEO Biswas recently hinted at the possibility of further job reductions in the future.
During the fiscal year 2022, Dunzo experienced a doubling of its net losses, amounting to INR 464 crore, despite its operating revenue showing a significant growth of 2.1 times, reaching INR 54.3 crore for the same period.