Quick commerce platform Dunzo is once again grappling with a funding crunch, leading to a delay in salary payments to its employees by over a month. The employees received an internal email revealing that the company would pay the remaining portion of June salaries, initially expected to be credited by July 20, in early September.
Internal Email Confirms Delayed Salary Payments
The internal email, informed the employees about the deferred salary payments. The email states that they will now pay the pending salaries for June on September 4, 2023. Additionally, they will also pay the July salary for all team members on the same date, along with the August salary. The company expressed regret over the delay and assured that efforts are underway to resolve the issue as soon as possible to minimize its impact on employees.
Dunzo Salary Deferral Issue Continues
Last week, reports indicated that Dunzo, a startup backed by Reliance, deferred salary payments to its managers. Approximately 500 employees, representing about 50% of the total workforce, had their June salaries deferred. The delay reportedly affected those earning above INR 75,000 per month. As a consequence, some employees have begun resigning from their positions in response to the ongoing salary payment issues.
Seeking Cash Infusion from Reliance Retail
In a bid to address its financial challenges, Dunzo is currently seeking an additional cash infusion of $20 million from its largest shareholder, Reliance Retail. Earlier this year, reports suggested that the startup was in talks to raise up to $100 million (INR 825 Crores) through convertible notes.
Dunzo Business Pivot in Response to Challenges
Amidst the financial turmoil, Dunzo is making strategic changes to its business model. The company is shifting from a dark store-centric quick commerce platform to a model that involves partnering with larger supermarkets and grocery stores on a revenue-sharing basis. This pivot aims to position Dunzo for sustainable growth and expansion in the evolving market landscape.
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