Cash-strapped quick-commerce startup Dunzo has once again postponed the disbursement of August salaries to several employees, despite their prior commitment to settle them by the week’s end.
During an impromptu video conference with employees on Friday, Kabeer Biswas, the Founder and CEO, announced that the overdue August salaries will be processed and disbursed next Tuesday or Wednesday.
Biswas indicated that the company had received “certain funds,” enabling the settlement of August salaries for a portion of the employees. However, the delay in disbursing payments to the remaining staff was attributed to “procedural requirements,” as informed by individuals familiar with the situation.
He refrained from specifying whether Dunzo had secured new funding but expressed optimism about finalizing fresh investments in the coming weeks.
It was reported that the company backed by Reliance Retail had committed to settling all employee salaries for August by the end of this week, originally scheduled for clearance by September 4.
Read More: Dunzo adopts ‘batch-wise’ salary payments following multiple delays
Furthermore, the company had announced that the outstanding salaries for June and July would experience additional delays, with no specific date provided for their future disbursement.
Dunzo has encountered challenges in securing funding due to a cash shortage, with investors at odds over a valuation mismatch, as reported by SnackFax on August 22.
Read More: Dunzo’s financial distress intensifies amidst shareholder disputes over valuation decrease
In the past eight months, the company has terminated nearly 400 employees. Additionally, Dunzo is grappling with legal notices from companies such as Google India, Koo, and Glance regarding outstanding vendor payments.
Read More: Cash-strapped Dunzo faces legal notice from Facebook and Nilenso over unpaid dues
Also Read: Legal troubles mount for struggling Dunzo as companies seek payment resolution