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Quick commerce startup Dunzo has deferred the salary payment for June and July to November, according to sources. The cash-strapped startup has delayed the salaries multiple times now.
Backed by Reliance Retail, Google, the company is also likely to move out of its headquarters in Bengaluru as part of further cost-cutting measures, the sources added.
Dunzo had held back a portion of salaries from June and July and had delayed it multiple times. The company has fired close to 400 employees.
The quick commerce company had tied up with payroll financing app OneTap to pay the salary for August, for which the employees had protested.
Business restructuring
Dunzo is also reorganising its business model and will shut down 50 per cent of its dark stores. The company will explore delivery partnerships with supermarkets and other merchants.
Bengaluru-headquartered Dunzo closed a $75 million financing round through convertible notes in April. The company had previously raised $240 million in equity funding in January 2022, led by Reliance Retail. Reliance Retail has a 25.8 per cent stake, while Google has about 20 per cent stake in the company. Cumulatively, the company has raised $457.6 million across 19 rounds of funding.
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