In the wake of financial challenges and a series of cost-cutting measures, Dunzo, the quick commerce startup backed by Google, has communicated its commitment to settling outstanding payments to former employees by March 30, 2024. The announcement comes after a period of adversity for the Bengaluru-based startup, which experienced delayed salaries in November and underwent significant layoffs, affecting more than 30% of its workforce as part of cost-reduction efforts.
Despite the hurdles faced, Dunzo remains optimistic about meeting the specified timeline for clearing dues, citing progress in the funding process as a positive indicator. The company underscores its dedication to addressing the delay, recognizing the potential emotional and financial impact on affected individuals. Over the past year, Dunzo has implemented various cost-cutting measures, including the migration of employee accounts to Zoho workspace, vacating its Bengaluru office, and shuttering some dark stores.
Once on the trajectory to become a unicorn in 2022, Dunzo reported a substantial net loss of ₹1,802 crore in FY23, and as of January 2022, its valuation was approximately $775 million. The quick commerce sector in India is highly competitive, with players like Swiggy-backed Instamart, BigBasket’s BBNow, Zomato-backed Blinkit, and Zepto actively seeking profitability by optimizing dark store efficiencies to enhance margins.
Founded in 2014, Dunzo has garnered investments from notable entities such as Reliance Retail Ventures, Lightbox Ventures, and Blume Ventures. Despite recent challenges, Dunzo remains a significant player in the dynamic landscape of quick commerce in India.
