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Dunzo further delays employee salaries amid cash crunch, says report

Business Today

Business Today · 1y ago

Dunzo further delays employee salaries amid cash crunch, says report

Quick-commerce startup Dunzo is facing a severe cash crunch, resulting in delayed salary payments to its employees. The company has been struggling to raise fresh funds and is renegotiating its valuation with investors. In an unplanned video call, Dunzo's founder and CEO, Kabeer Biswas, promised to pay pending August salaries next week. The company is also considering vacating its office space in Bengaluru to cut costs. With outstanding dues of ₹11 crore and legal action from multiple vendors, Dunzo's financial challenges continue to mount.

Related News

Dunzo tells staff June-July salaries will be further delayed

Economic Times

Economic Times · 1y ago

Dunzo tells staff June-July salaries will be further delayed

Dunzo, a quick commerce company backed by Reliance Retail, has informed employees about further salary delays for June and July due to a worsening cash crunch. Employees were promised on-time salaries for August in early September. The company has faced difficulty securing new financing due to differing valuations among investors. It has previously delayed salary components and has struggled to maintain its dark stores amid delayed payments to workers. Dunzo is also dealing with legal notices from Google India, Facebook India Online Services, and others over pending vendor payments.

Dunzo delays paying salaries further as company faces severe cash crunch

Economic Times

Economic Times · 1y ago

Dunzo delays paying salaries further as company faces severe cash crunch

Cash-strapped quick-commerce startup Dunzo has delayed paying August salaries to employees, citing procedural requirements. Founder Kabeer Biswas assured payment next week, hinting at potential fresh funding. The company, facing a cash crunch and investor disputes, had previously promised August salary clearance by this week, and unresolved delays for June and July salaries. Legal notices from Google India, Koo, and Glance also compound its challenges.

Cash-strapped Dunzo promises to pay former staff by March-end

Livemint

Livemint · 1y ago

Cash-strapped Dunzo promises to pay former staff by March-end

Google-backed quick commerce startup Dunzo has announced plans to settle outstanding payments to former employees by 30 March, after facing profitability issues and a liquidity crunch. The company had previously faced challenges in disbursing salaries and resorted to cost-reduction efforts, including layoffs. Dunzo has assured its staff that they are on track to clear the dues and there will be no further delays. The company reported a substantial net loss of ₹1,802 crore in FY23 and is valued at about $775 million.

WestBridge-Backed Otipy Shuts Down Amid Severe Cash Crunch

StartupTalky

StartupTalky · 1m ago

WestBridge-Backed Otipy Shuts Down Amid Severe Cash Crunch

Otipy, a farm-to-fork vegetable supplier based in Delhi NCR, has ceased operations due to a severe cash crunch, leaving around 300 workers unemployed. Founded in 2020 and backed by WestBridge Capital, Otipy failed to secure additional funding and has not paid employee salaries for 1.5 months. The management plans to sell off assets to settle outstanding debts. The abrupt closure follows previous vendor payment delays and an unsuccessful foray into offline sales using electric carts.

Dunzo defers pending salaries for June-July to Feb 2024: Report

Inshorts · 1y ago

Dunzo defers pending salaries for June-July to Feb 2024: Report

Cash-strapped startup Dunzo has informed employees that it will pay the remaining salaries for June and July by February 2024, citing the current business situation. The payments will include an interest of 12% per annum based on the employee's service period. Former employees will receive payments for August and September salaries by January-February 2024 as part of the full and final settlement. Dunzo has been facing a severe liquidity crisis, resulting in salary delays, restructuring, and operational halts. The company is reportedly in talks with investors to raise funding.

Byju's says it has paid part salaries for February, will pay rest from rights issue fund

IndianStartupNews

IndianStartupNews · 1y ago

Byju's says it has paid part salaries for February, will pay rest from rights issue fund

Amid ongoing financial troubles, edtech giant Byju’s has partially cleared the February salaries for its employees. Salaries were disbursed in full for employees up to a certain bracket, while others received only a portion. Byju’s has been facing cash flow challenges and legal disputes with investors that have impacted its ability to access funds. The company remains optimistic about accessing funds from a recent rights issue, which would allow them to pay the remaining balances. Byju’s has communicated with employees about the situation, apologizing for the delays and citing banking and legal challenges.

Three more Dunzo dark stores in Bengaluru close down

YourStory

YourStory · 1y ago

Three more Dunzo dark stores in Bengaluru close down

Employee unrest at Dunzo's Bengaluru dark stores has intensified as more units went offline due to salary disputes. Workers are demanding July salaries before resuming operations. The company's management offered no specific date for payment but assured promptness. Some services are temporarily fulfilled by partner stores. Earlier, the firm shifted its focus to a hybrid network model. Dunzo, dealing with financial challenges, deferred August salaries for streamlining cash flow. It previously transitioned from B2C to B2B and laid off employees.

Dunzo cofounder Dalvir Suri to exit amid tough times

Economic Times

Economic Times · 1y ago

Dunzo cofounder Dalvir Suri to exit amid tough times

Dalvir Suri, co-founder of Dunzo, the on-demand delivery startup backed by Reliance Retail, is leaving the company amidst a severe cash crunch. Suri, who was involved in Dunzo's business-to-business delivery arm, Dunzo Merchant Services (DMS), played a key role in the company's operations and client coordination with Reliance JioMart. Dunzo has been facing multiple crises in recent months and has scaled down its consumer-facing operations. Suri's departure comes as the company seeks to raise new funding to alleviate its cash-flow crisis.

Good Glamm Group Troubles: Employee Salaries Delayed for Second Month Amid Funding Woes

OutlookIndia

OutlookIndia · 1m ago

Good Glamm Group Troubles: Employee Salaries Delayed for Second Month Amid Funding Woes

Good Glamm Group is experiencing financial difficulties, leading to delayed salaries for April and May 2025. The company, which faces a cash crunch, missed funding expectations and seeks to raise capital at a reduced valuation. Employee payments, including those for former staff, are pending, causing financial strain. The situation has caused investor confidence to falter, leading to board resignations and leadership changes, casting doubt on the company's sustainability and growth.

Dunzo board, investors vet key costs to keep cash flow in check

Economic Times

Economic Times · 1y ago

Dunzo board, investors vet key costs to keep cash flow in check

The board and investors of Dunzo, a cash-strapped quick-commerce startup, are reviewing major expenses and closely monitoring cash flow. The company, backed by Reliance Retail, is struggling to manage cash flow and has pending dues towards vendors and staff salaries. The ongoing crisis has triggered a closer monitoring of capital allocation and efforts to raise fresh funding through a rights issue. Dunzo is focusing on Dunzo Merchant Services and its ONDC-linked operation to sustain itself. The fate of the company will be clearer by November.

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