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

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.