Grocery delivery startup Dunzo lays off 3% of its workforce
Reliance Retail-backed grocery delivery startuplaid off 3% of its workforce last week. However, the specific number of laid off employees is yet to be revealed.
"Last week, we had to part ways with 3% of our team strength. Whatever the numbers, these are people who chose to build their careers with Dunzo, and it is sad to have talented colleagues leave us," Kabeer Biswas, CEO and Co-Founder, Dunzo, said in a statement.
The company said it is extending the best support possible to help the employees during this transition. "We are continuously looking at our team structures and network design to build efficiency into our teams. As we scale from 10 to 100, we are continuously learning how to redefine business processes at scale," said Kabeer.
Dunzo was looking to raise $70 million to $100 million (up to Rs 825 crore) through convertible notes to scale its quick commerce vertical, Dunzo Daily, reports said. It previously raised $6.2 million from Blacksoil India via debentures.
He said that any decision that impacts people is tough and is always our last option.
Reliance Retail invested a total of $240 million in January of last year at a valuation of $775 million.
In FY22, the hyperlocal delivery startup reported a net loss of Rs 464 crore, a 2X spike from Rs 229.1 crore in FY21, due to significant operational costs. The company said that its delivery-related expenses accounted for 25.2% of the overall spending and shot up 4.6X to Rs 134 crore in FY22 from Rs 29.4 crore in FY21.
(The story was updated to update the blurb)
Edited by Akanksha Sarma