Reliance And Google-Backed Dunzo Delays 50% Salary Of Staffs: Report In April this year, Dunzo had laid off 30% of its staff after securing $75 million funding from Reliance Retail, Google, and other investors
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Hyperlocal quick commerce company Dunzo, which is backed by Reliance Retail and Google, has deferred 50% salary of some employees. These cutbacks have been made in the salary of staff who are in the manager grade and above, according to a BT report, citing sources.
"All employees manager grade and above have only received 50% of the salary of June. Rest company says they will pay it later," the source told BT.
Another employee reportedly confirmed, "We were informed that we would get the rest of the salary between July 15th to 25th. There are rumours of restructuring amid a cash crunch."
In April this year, Dunzo had laid off 30% of its staff after securing $75 million funding from Reliance Retail, Google, and other investors. According to the report, the company management also discussed a pivot in business model in a company-wide town hall after the announcement of funding and job cuts was made. Also, the quick commerce company decided to shut 50% of its dark stores across the country.
Financial records from the Ministry of Corporate Affairs filings for the fiscal year 2021-22 revealed the company's challenging financial situation. Despite reporting a total revenue of INR 67.7 crore, the expenses incurred by the company amounted to a staggering INR 531.7 crore.
The operating revenue stood at INR 54.3 crore, up from INR 25.1 crores of FY21. Despite that, the consolidated loss stood at INR 464 crores, up two times YoY. The company's biggest expenses driver was employee benefit expenses, which stood at INR 138 crore, the report added.