According to sources, fast commerce startup Dunzo has postponed salary payments for June and July to November. The cash-strapped startup has delayed payroll multiple times.
The company, with support from Reliance Retail and Google, may also move out of its headquarters in Bengaluru as part of further cost-cutting measures, the sources added.
Dunzo withheld some wages for June and July and delayed their payments multiple times. The company has laid off nearly 400 employees.
The express commerce company partnered with payroll financing app OneTap to pay August wages, but faced protests from employees.
Business restructuring
Dunzo is also restructuring its business model and will close 50% of its dark stores. The company will explore delivery partnerships with supermarkets and other merchants.
Bengaluru-based Dunzo had raised $75 million through convertible notes in April. The company had previously raised $240 million in equity funding in January 2022, led by Reliance Retail. Reliance Retail owns 25.8% of the company, while Google owns around 20%. The company has raised a total of $457.6 million through 19 rounds of financing.
