Dunzo financial crisis: Dark stores in Bengaluru halt operations amid workers' salary delay

Updated : Aug 17, 2023 11:59
|
Editorji News Desk

Cash-strapped Dunzo is facing yet another distress. This time the company's dark stores workers in Bengaluru have refused to come back to work as their July salaries are delayed.  

As per Business Standard, its dark stores in the city’s Indiranagar, Richmond Town, and HSR Layout halted their operations on Wednesday. Its two stores in Kormangala and ITI Layout are already unserviceable since Monday.

Also Read: Dunzo defers paying out June salary once again, cites cash crunch

The company reportedly operated around 250 dark stores earlier and currently has only 7 stores in Bengaluru. As per YourStory, Dunzo’s dark stores have about 70 off-roll workers who earn up to Rs 20,000 every month and are mainly involved in packing groceries and handing them to assigned delivery partners. 

One of the employees told YourStory that the workers are coming together to halt the operations until clarification regarding salary comes while adding that Dunzo had only verbally promised that Salaries would be paid soon.

Dunzo spokesperson also told YourStory that the company is planning to become 100% operational soon. The company has brought in hybrid system model comprising of dark stores and partner stores to curb the expenses. 

The company had deferred the June and July salaries of over 50% of its workforce of 1,000 to the first week of September. It had also capped employee salaries at Rs. 75,000, irrespective of their pay package. This comes despite the firm raising $75 million through convertible notes in April this year.

 

 

Dunzo

Recommended For You

editorji | Business

Sensex falls 429 points, Nifty slips 173 points after RBI rate hike

editorji | Business

RBI raises repo rate by 25 bps to 5.50%, shifts policy towards tightening

editorji | Business

GST rates likely unchanged as 57th Council meeting focuses on reforms

editorji | Business

Sensex gains 685 points, Nifty rises 220 points to cross 22,700

editorji | Business

Sensex gains 473 points, Nifty rises 134 points as markets stage recovery