Cash-starved hyperlocal delivery startup Dunzo has reportedly deferred the payment of pending salaries to its employees by another four months.
In an internal email to its employees, Dunzo said it would clear the pending dues, if any, including salaries for the months of June and July, in January-February 2024, Moneycontrol reported.
The employees who left the company in the recent past will also receive their full and final payments in January or February next year.
This is not the first time that Dunzo has extended the deadline for its pending salary payment. Initially, it was supposed to pay a portion of the June salaries to its employees by July 20, which got extended till early September. Then the company further extended this deadline till the first week of October.
Even after delaying the salary payments by four more months now, Dunzo continues to promise an interest of 12% per annum on the service period.
A mail sent to Dunzo seeking confirmation of the development did not elicit any response till the time of publishing this story.
“We are working towards ensuring all pending salaries are paid at the earliest. However, we regret to inform you that given the present business situation, the revised timelines by which we will clear pending dues, including salaries for the months of June and July, if any, in January – February 2024,” as per Dunzo’s email to its former employees.
“Additionally, all other remaining payments, which include August/September salary for days served will be paid out by January-February 2024 as part of your F&F,” the email said.
It is pertinent to note that the delay in salary payments comes at a time when Dunzo is also undergoing a major rejig in its management amid a severe cash crunch. Two of its cofounders – Dalvir Suri and Mukund Jha – are leaving the startup.
Besides, multiple board members of Dunzo have also quit recently. The names include Vaidhehi Ravindran of Lightrock and Reliance Retail’s Rajendra Kamath and Ashwin Khasgiwala.
There are also legal notices against Dunzo from at least seven companies, including Google, Facebook, Nilenso, Clover Ventures, and others, over pending dues.
Amid the growing problems, Dunzo was looking to raise $100 Mn in its Series G funding round from its existing investors, including Lightbox and Lightrock, Inc42 reported in August. However, a disagreement over valuation halted the fundraising plans.
Dunzo’s net loss doubled to INR 464 Cr in FY22.
Amid the ongoing crisis, the Bengaluru-based startup has laid off around 400 employees since last year. Last month, Dunzo CEO Kabeer Biswas also warned its employees about the possibility of further layoffs in the company.
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