After a wave of layoffs this year, Google-backed Dunzo, a competitor in rapid commerce, has now decided to postpone paying 50% of its staff members’ salary for the month of June, we have learnt. The move will have the most impact on the company’s top management, according to those familiar with the situation.
Dunzo employs more than 1,000 individuals in total, and the recent decision to postpone paychecks will affect roughly 500 of them, according to the sources mentioned above. The decision also suggests that other layoffs may be forthcoming, they continued. However, the business has promised its employees that they would receive their salary later this month.
The Bengaluru-based corporation has historically lowered costs. Dunzo has been placing more emphasis recently on using a marketplace model to get products rather than solely relying on its network of dark stores. Unlike Swiggy Instamart, Blinkit, and Zepto, the company now purchases goods from the neighbourhood grocer and delivers them to consumers rather than keeping them on-hand.
According to reports, this action caused Dunzo to cut the number of its dark stores by about 50%. In an effort to increase revenue per purchase and put itself on the road to profitability, the company also started raising delivery prices, delaying deliveries, and adding convenience fees to customers.
Since 2015, Dunzo has received close to $500 million in funding from sources including Reliance, Google, Lightrock, Lightbox, Blume Ventures, and many more. According to Tracxn, Reliance holds the highest shareholding in Dunzo with a 25.6 percent interest, followed by Google with a 19 percent interest.
