Reliance Retail-backed Platform Aims to Turn Business Around, Settle Pending Liabilities
Dunzo, the convenience platform backed by Reliance Retail, has disclosed its intention to achieve its first full profitable year in the fiscal year 2025 (FY25), despite facing a prolonged liquidity crisis. In an email addressed to former employees on Monday morning, the company revealed its commitment to attaining profitability while also addressing pending salary payments and other liabilities.
The email outlines Dunzo’s plans to expand its team and focus on specific categories starting July 2024, signaling a strategic shift to bolster its operations and enhance profitability.
Acknowledging the financial strain faced by former employees, whose salaries and settlements have been pending since July last year, Dunzo assured that it would initiate the clearance of pending salaries and Tax Deducted at Source (TDS) payments in batches, commencing immediately. The company aims to settle other outstanding liabilities using its existing cash flows over the next four weeks.
Kabeer Biswas, the CEO of Dunzo, expressed optimism about the company’s financial trajectory, stating, “We were, of course, attempting to settle all the dues in one go, but given the current situation, we will get them completed incrementally over the next few weeks.”
Dunzo also expressed gratitude towards former employees for their patience and support during a challenging period. The company assured proactive communication regarding pending settlements and requested understanding from employees regarding potential delays in response times due to operational constraints.
Tried to reach out to Dunzo for further comments on the matter, and this article will be updated upon receiving a response.
The on-demand delivery platform has grappled with salary payment delays in the past, citing efforts to secure additional funding to meet financial obligations. In previous communications, Dunzo had outlined plans to address outstanding liabilities and committed to providing payment timelines.
The resignation of Co-founder Dalvir Suri in October marked a significant development for Dunzo. Suri played a pivotal role in introducing new lines of businesses, including Dunzo Merchant Services (DMS), as the company navigated through various challenges.
