Dunzo, a quick commerce company grappling with financial constraints, is currently undergoing a significant downsizing effort aimed at reducing its workforce by approximately 30-40%.
According to information received by Fe from some employees, the company has already terminated the contracts of nearly 400 employees in two rounds earlier this year.
Dunzo Undergoing Downsizing – Reduces Workforce By 30-40%
Concurrently, Dunzo is in the advanced stages of finalizing a funding round with a target range of $25-30 million.
Major investors like Reliance Retail, Google, and Lightrock are anticipated to partake in this funding, although the precise valuation remains undetermined.
Insiders have indicated that the involvement of these investors will be proportionate to their existing ownership stakes, meaning they will contribute funds in line with their current shares in the company. Reliance Retail holds the largest stake at 25.8%, followed by Google India at approximately 19%.
Dunzo’s Communications To Employees
Securing additional funds would offer crucial respite for Dunzo, which has been beset by legal notices due to payment delays. The company has struggled to pay its employees on time and had previously informed them of a deferral in salaries for the months of June and July, with the intention to compensate in September alongside the August salary.
Regarding the recent wave of layoffs, Dunzo has communicated to affected employees that they will receive their full and final settlements by January. An employee on the layoff list revealed that they were presented with two options: to resign immediately and receive the settlement in January or February, or to resign with a notice period and receive the due September salary in October, along with the full and final settlement in January or February.
Despite attempts to seek clarification from Dunzo regarding the latest round of layoffs and the fundraising efforts, the company has not responded to queries. The future of Dunzo hangs in the balance as it navigates financial challenges and strives to ensure the sustainability of its operations and workforce.
