Dunzo, the quick commerce platform, is facing a series of challenges, including employee dissatisfaction due to delayed salary disbursements and mass layoffs. Adding to its troubles, one of its co-founders, Dalvir Suri, has recently departed from the company.
Dalvir Suri had been with the company since May 2015 and while the specific reason for his departure remains undisclosed, reports suggest that his exit followed discussions with the company's CEO, Kabeer Biswas, over the past couple of months.
Kabeer Biswas is the sole equity holder among the co-founders, which also include Mukund Jha and Ankur Agarwal. As per data from TheKredible, Biswas holds a 3.56 per cent equity stake in the company.
Dunzo's troubles are further compounded by the delay in salary payments to its employees over the past couple of months. The company has now postponed salary disbursements to the first week of October.
In addition to these internal challenges, Dunzo is struggling for its survival and actively seeking new funding. Media reports indicate that the company is in talks to secure between USD 30 to USD 35 million in new funding. Notably, Dunzo has key investors such as Google, Reliance and Lightbox and it has raised approximately USD 475 million in funding to date.
The company has already let go of more than 400 employees in multiple rounds of layoffs this year and with the recent departure of a co-founder, the possibility of further layoffs cannot be ruled out.
While Dunzo has not yet disclosed its financials for the fiscal year 2023, it reported revenue from operations of Rs 54.3 crore in fiscal year 2022, a significant increase from the Rs 25.1 crore in the previous fiscal year. However, the company also reported losses of Rs 464 crore in fiscal year 2022, up from Rs 229 crore in the prior year, underscoring the financial challenges it faces.