Ecommerce News

Dunzo to settle dues of ex-employees in 3 months; firm restructuring underway, ET Retail


New Delhi: Logistics and delivery firm Dunzo plans to settle dues of former employees in next three months while it is regularising salary for its current employees, sources said. The firm backed by Reliance Retail and Google said that while its co-founder Davlir Suri has decided to leave the company, another co-founder Mukund Jha will continue be part of the strategic leadership team.

“In June salary of 85 per cent employees were paid. Salary of current employees for the month of July is pending and rest of month salary has been cleared. The July month salary will also be cleared in some time. Dues of ex-employees will be settled in the next three months,” a source, who did not wish to be identified, told PTI.

The development comes after Dunzo raised USD 75 million in April, and fired about 300 employees in the first half of this year as part of cost-cutting measures.

The company in total has raised around USD 457 million.

Another source said that the company has plans to lay off around 150-200 employees.

The information, however, could not be confirmed officially.

Suri has quit but the company denied reports of Jha’s exit.

“Dalvir has been instrumental in building out every new line of business at Dunzo. He has been the key zero to one person from the founding team that just gets things done. He has been meaning to take a break for sometime now – and with over 6 years spent building Dunzo, he plans to move forward to pursuing new journeys,” Dunzo co-founder and CEO Kabeer Biswas said.

On a query related to Jha quitting the company, Dunzo spokesperson said: “Mukund remains an integral part of Dunzo’s leadership team. While we are restructuring the organisation with new leaders driving key mandates, Mukund will continue to be an important part of the strategic leadership team guiding and directing Dunzo’s future roadmap.”

Dunzo valuation may drop to USD 200 mn, firm seeks nod for rights issue

While a few of the existing investors have committed around $10-15 million in capital at the reduced valuation, the company’s board is yet to clear the proposal.

Reliance, Lightrock representatives exit Dunzo board amid legal notices, pending dues

Quick commerce startup Dunzo has experienced several board of directors exits over the past two months, reportedly due to cash-flow issues and pending dues. The exits are said to be temporary, with board members potentially returning after a planned funding round and dues are resolved.

  • Published On Oct 4, 2023 at 08:29 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRetail App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App


Source link