Dunzo financial crisis: Initiates restructuring, aims to clear ex-employee dues within 3 months

Dunzo, the logistics and delivery startup backed by Reliance Retail and Google, is taking steps to address its financial situation. The company will initiate a restructuring plan. It also intends to settle outstanding dues to former employees within the next three months and regularise salaries for current employees, according to undisclosed sources, reported PTI.

In June, Dunzo managed to pay the salaries of 85 percent of its employees. However, salaries for current employees for the month of July are still pending, though the rest of the month's salaries have been cleared.

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These developments follow Dunzo's successful fundraising of USD 75 million in April, which was accompanied by the firing of approximately 300 employees in the first half of the year as part of cost-cutting measures. In total, the company has raised approximately USD 457 million.

While there have been reports suggesting that the company may lay off another 150-200 employees, this information has not been officially confirmed.

Co-founder Dalvir Suri's exit

Co-founder Dalvir Suri has decided to leave the company, but Dunzo denied reports of co-founder Mukund Jha's departure. According to Dunzo co-founder and CEO Kabeer Biswas, Suri played a crucial role in building various aspects of Dunzo's business and has decided to take a break to explore new opportunities. As for Mukund Jha, Dunzo emphasized his continued role as an integral part of the company's leadership team, guiding its future direction and strategic planning amid ongoing organizational restructuring.