Money-strapped quick-commerce agency Dunzo has deferred wage payouts for its workers as soon as once more. A number of experiences recommend, that the Reliance-backed upstart has knowledgeable its senior workers that the remaining parts of their salaries (which had been initially due from June) will now be deferred till September 4. Moreover, the agency might be doing a brand new spherical of layoffs — round 200 — its third this 12 months.
The earlier deadline of assembly the payouts was Thursday, July 20, after Dunzo had deferred the June salaries for round 500 workers, which quantities to round 50% of its whole workforce. Now, workers will obtain the remaining wage for each June and July might be paid to them with the August wage payout within the first week of September. For many who want a reminder, Dunzo operates within the prompt grocery supply market, and operates alongside the likes of Swiggy and Zomato. To date, it has already shut down greater than half of its darkish shops.
This improvement isn’t surprising, on condition that the Bengaluru-based hyperlocal supply startup has been determined for money for fairly a while. The Reliance Retail-backed Dunzo is already participating with buyers to boost further capital, safe correct funding, in addition to type out its money move points, amidst a money crunch and even after it raised a bridge spherical of $75 million in April. To date, the startup has raised almost $500 million and was final valued at $757 million.
Financial Instances experiences that the corporate is now seeking to elevate a $20-25 million lifeline, and is talking to Reliance Retails, as different current backers haven’t dedicated to refinancing.
“For these workforce members who had been anticipating the steadiness payouts of their June wage throughout this week, we remorse to tell you that this has been delayed. The pending salaries for June will now be paid on September 4th, 2023. Moreover, the July wage for all workforce members might be paid solely on September 4th together with the August wage,” learn an e-mail by the corporate to its workers.
This improvement additionally comes on the heels of the startup placing an higher restrict to the month-to-month salaries of its workers in June. No matter their pay package deal, the salaries of Dunzo’s workers have now been capped at ₹75000 per thirty days, and Dunzo execs assured workers that salaries had been being capped just for June and that each one dues might be cleared by July 20. Clearly, the latter didn’t work out, and sources inform that price cuts of round 30-40% are coming to the short commerce agency.
“We perceive that is very tough for you and we recognize your persistence. At this stage, we have to deal with streamlining our money move so we are able to construct a extra sustainable enterprise for the long run. We’d like your help as we work via this,” the e-mail added.