Dunzo assures dues to former employees by March 30; says made headways in fundraising
Reliance Retail-backed Dunzo is in the middle of a liquidity problem and has been scouting for capital to keep the engines running.
Cash-strapped convenience startup Dunzo told former employees on Wednesday that pending final settlements would be disbursed by March 30, given that it has made progress in the fundraising process.
The Reliance Retail and Google-backed company acknowledged that it has not kept up with commitments of the payment timeline in the past and assured that there will not be any further delay, according to an email sent to former employees.
“... We completely understand that dues have not been settled in the ideal time, and this delay must have been exhausting for you emotionally and financially. We sincerely regret this inconvenience and beg your pardon. It was never our intent to delay, and we have always kept all team members at Dunzo as the highest priority,” it said in the email.
YourStory has seen the email and has reached out tofor a comment on the development. The story will be updated once the response comes in.
Earlier in January, Dunzo said it was working on a long-term business plan to clear liabilities and repay pending salaries. This came after it informed former employees in October last year that salaries for June and July, along with final settlements, would be paid by February 2024.
The payout would include an interest of 12% per annum based on the employee's service period.
In December, several of Dunzo's partner stores, including Easy Bazar and MK Retail, went offline temporarily as the company delayed payments of grocery orders. They returned online in the same week after the dues were cleared.
The on-demand delivery platform has delayed salary payments several times in the past, noting that it is gearing up to raise additional funding to fulfil payment obligations.
In September, Dunzo partnered with payroll financing company OneTap to disburse salaries for existing employees for the month of August.
Earlier in August, YourStory had reported that Dunzo was massively scaling down its quick commerce operations under Dunzo Daily to cut down cash-burning propositions and focus on more lucrative verticals. A Dunzo spokesperson later confirmed that the company was in the process of moving to a partner store format.
Following the closure of most of its dark stores across major cities, including Bengaluru, the firm partnered with a host of offline retail stores such as MK Retail, Easy Bazar, Pristine Supermarket, and Deepa Retail to service quick commerce orders.
Dunzo Co-founder Dalvir Suri stepped down from his role in October. Suri played a key role in introducing new lines of businesses, including Dunzo Merchant Services (DMS).
Edited by Kanishk Singh