Dunzo, a quick commerce startup backed by Google, has informed its staff through an email that it plans to settle outstanding payments to former employees by March 30, 2024.
The acknowledgment follows a challenging period for Dunzo, including delayed salaries in November and laying off more than 30% of its workforce as part of cost-reduction efforts. The Bengaluru-based startup has faced financial issues, leading to deferred payments to laid-off staff, creditors, and vendors.
Despite difficulties, Dunzo expresses confidence in meeting the timeline for clearing dues, citing progress in the funding process.
The company emphasizes its commitment to addressing the delay, understanding the emotional and financial impact it may have had on affected individuals. Over the past year, Dunzo implemented various cost-cutting measures, such as migrating employee accounts to Zoho workspace, vacating its Bengaluru office, and closing some dark stores.
Dunzo, once on the path to becoming a unicorn in 2022, reported a substantial net loss of ₹1,802 crore in FY23. As of January 2022, its valuation stood at about $775 million. The quick commerce sector is highly competitive, with players like Swiggy-backed Instamart, BigBasket’s BBNow, Zomato-backed Blinkit, and Zepto vying for profitability by optimizing dark store efficiencies to improve margins.
Dunzo, founded in 2014, has investors including Reliance Retail Ventures, Lightbox Ventures, and Blume Ventures. Despite recent challenges, Dunzo remains a significant player in the evolving landscape of quick commerce in India.