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

Dunzo employees have been left in the lurch once again. The popular quick-commerce player, has deferred the payment of June salaries for a second time.

Earlier, the company had assured employees that the June salaries would be paid by the 20th of July. However, today, one day before the deadline, employees received an email saying that salaries would be further delayed until late August or early September, reported Money Control.

Earlier, Dunzo had deferred the June salaries for approximately 500 employees, which accounted for 50% of its entire workforce.

The company had assured them that all pending dues would be cleared by July 20. However, due to ongoing efforts to raise additional funds and address cash flow issues, Dunzo has had to extend the deadline further.

To improve its financial health, Dunzo also implemented a salary cap of ₹75,000 per month for all employees, regardless of their previous pay package.

While this move was intended to alleviate the company's financial strain, it has inevitably impacted the affected employees.

In light of the missed deadline, the payroll team sent an email to the employees, notifying them about the delay on July 19.

The email stated, "For those team members who were expecting the balance payouts of their June salary during this week, we regret to inform you that this has been delayed. The pending salaries for June will now be paid on September 4th, 2023. Additionally, the July salary for all team members will be paid only on September 4th along with the August salary."

Dunzo's current financial situation highlights the challenges faced by many startups in the competitive quick-commerce industry. The company is actively engaged in securing investments and resolving its cash flow issues to ensure its operations continue smoothly.