Dunzo caps salaries at ₹75k for June amid cash crunch

Dunzo, the quick-commerce player capped its employees' montly salary at ₹75,000 for the month of June as per a Moneycontrol report. This amid a severe cash crunch that the start up is facing.

This means that even those who have a higher salary package will receive only ₹75,000. However, those earning below the cap would receive their full salary.

This development comes after reports that the startup had deferred June salaries for approximately 500 employees, which accounted for about 50% of its workforce.

Kabeer Biswas, the co-founder and CEO of Dunzo, reassured the employees that the cap was only applicable for June and that all dues would be cleared by July 20.

While the salary deferrals affected the entire workforce, senior employees were hit the hardest. According to Moneycontrol sources, around 60-65% of the employees received their full salaries, while the remaining 35-40% received only ₹75,000 as their June salary.

With the situation uncertain for Dunzo, the recent actions taken by Dunzo could potentially lead to further layoffs and voluntary exits. Earlier this year, the Bengaluru-based startup had already terminated around 380 employees in two rounds of layoffs.

In addition to the financial challenges, Dunzo has also faced strategic changes. Supported by Google and Reliance Retail, the hyperlocal fast commerce startup recently decided to close half of its nationwide network of dark stores and made alterations to its business model after a town hall meeting with management. In April, the company fired 30% of its staff following a substantial $75 million fundraising round.