Indian quick-commerce service Dunzo has laid off 75 per cent of its employees and maintained its workforce to only 50 members in its core supply and marketplace teams.
According to a report by Financial Express, Dunzo reportedly laid off 150 employees to curb costs and generate sufficient cash flow for hanging liabilities.
Dunzo, on Friday, in an e-mail to its employees, asserted that it would pay pending salaries, leave encashments, and sort out other dues of the affected employees as soon as it manages necessary funds.
The company which once had a valuation of Rs 6,505 crore is now struggling to secure enough funding.
In May 2024, Dunzo was about to secure Rs 184 crore - Rs 209 crore from equity and debt through its new and existing investors.
The company had in July 2024, told its employees that it was in its final stage of securing a deal which was expected to settle all dues within 10-15 days.
But the deal which turned out to be a failure, was never closed and led cash-strapped Dunzo more deeper in the ditch,
In February 2024, Walmart-backed Indian e-commerce firm Flipkart had held discussions over potentially acquiring the on-demand delivery platform.
Reliance Retail in 2023 had invested Rs 1,679 crore and acquired about 25 per cent ownership of the delivery company.
Dunzo, which was founded in July 2014 by Kabeer Biswas, delivers fruits, veggies, supplies, food ingredients, medicines in major cities and has its headquarters in Bengaluru.
The company suffered a data breach in June 2019, which exposed information of approximately 3.5 million users including their email addresses, names, phone numbers and IP addresses.
Published 03 September 2024, 05:52 IST