Tag: Dunzo

Walmart-backed Flipkart in talks to acquire Dunzo: TechCrunch reports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Walmart-backed Indian e-commerce giant Flipkart is reportedly exploring the possibility of acquiring the on-demand delivery platform Dunzo, according to sources familiar with the matter, as reported by TechCrunch on Tuesday.

Discussions between Flipkart and Dunzo are said to be underway, but the process has encountered complications related to Dunzo’s ownership structure, preventing both parties from reaching a consensus on the potential acquisition.

The report highlights that the retail arm of Reliance Industries, which acquired a 26% stake in Dunzo for $200 million in 2022, has yet to approve the deal, adding further complexity to the negotiation process.

In response to inquiries from Reuters, Dunzo stated via email that they have not engaged in any discussions regarding the acquisition of their business by any entity.

At the time of reporting, neither Flipkart nor Walmart has provided an official comment on the matter.

Dunzo, supported by investments from Alphabet’s Google, has faced financial challenges, leading to recent measures such as corporate restructuring, salary deferments, and staff layoffs.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Betterplace Safety Solutions pursues legal action against Dunzo Digital for unpaid dues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Betterplace Safety Solutions has moved the National Company Law Tribunal (NCLT) in Bengaluru against Dunzo Digital for unresolved payments. The panel comprising of judicial member Justice T Krishnavalli and technical member Manoj Kumar Dubey have issued a notice regarding the matter and scheduled a hearing for March 4.

Khurana & Khurana Advocates and IP Attorneys were the representatives for Betterplace.

This petition, aimed at initiating the corporate insolvency resolution process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC), was officially filed on November 21, 2023. Subsequently, it was listed for further proceedings on January 24.

The outstanding debt owed by Dunzo to Betterplace stems from various services provided, including background verification, recruitment of delivery personnel, asset management, and merchandise, all delineated within a master service agreement and platform subscription agreement.

Despite granting multiple extensions, Dunzo has allegedly failed to settle these outstanding dues, necessitating Betterplace’s decision to pursue legal recourse.

Also Read: Amazon India to shut down distribution unit after closing food delivery and learning platforms

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dunzo’s ad spends surge over 350% even as losses mount

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cash-strapped Dunzo’s losses widened to ₹1,802 crore in the financial year 2023. This was 288% more than the loss of ₹464 crore the company posted in the year-ago period. However, the beleaguered hyperlocal delivery player’s expenses surged nearly four times during the period. The company spend ₹2,054 crore in FY23, a sharp surge from ₹532 crore in the year ago period.

Of the total spends, the Reliance Retail backed company spent ₹310 crore on advertisements in the financial year 2023, up from ₹64 crore in the year ago. This comes to an average of 80 lakh daily in financial year 2023. The company marketed its services during the Indian Premier League earlier this year, which drove the expenses higher.

Dunzo’s revenues rose to ₹227 crore, up from ₹54 crore in the previous year. During the year, the company’s employee benefit expenses climbed to ₹338 crore in the fiscal, 144% higher than ₹138 crore in FY22.

Also Read: Nykaa Q2 Results: Net profit rises 50% led by beauty and personal care business, revenue gains 22%

In October, Dunzo co-founder Dalvir Suri departed after six years. He joined Dunzo back in May 2015. He worked alongside Kabeer Biswas, Ankur Aggarwal, and Mukund Jha.

The company is looking to raise funds, lining up $25-30 million.

Dunzo has so far raised close to $500 million since 2015 from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and several others. Reliance is the largest shareholder with a 25.8 percent stake in the company, and Google was the second-largest with around 19 percent ownership in Dunzo, according to Tracxn, a private markets data provider.

Also Read: Ola, Uber and Dunzo among worst platforms for gig workers, bigbasket tops fair work norms list

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cash-strapped Dunzo’s co-founder Dalvir Suri exits; Reliance Retail nominees step down from the board, say sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Quick commerce platform Dunzo’s co-founder Dalvir Suri has quit the company at a time when the startup is facing a funding crunch, delayed payments to employees and layoffs.

In a statement to CNBC-TV18, Co-founder and CEO Kabeer Biswas said, “Dalvir has been instrumental in building out every new line of business at Dunzo. He has been the key zero to one person from the founding team who just gets things Dun. He has been meaning to take a break for some time now — and with over six years spent building Dunzo, he plans to move forward to pursuing new journeys.”

Biswas added, “We are making some org-wide changes in restructuring our business starting this quarter, and the DMS business (Dunzo Merchant Services: B2B vertical) has very capable leadership that’s picking up directly after him.”

Meanwhile, reports have also suggested that Mukund Jha, co-founder and chief technology officer (CTO) of Dunzo is also leaving the company, making him the second co-founder to depart in a week. However, the embattled startup has denied this development, saying Jha remains an integral part of Dunzo’s leadership team.

“While we are restructuring the org with new leaders driving key mandates, Mukund will continue to be an important part of the strategic leadership team guiding and directing Dunzo’s future roadmap,” a Dunzo spokesperson told CNBC-TV18.

The news of Jha’s potential departure has not been formally announced within the startup. According to a Moneycontrol report, only a select few employees have been informed of this development. The report also suggests that Jha has withdrawn from day-to-day operations, and a formal announcement regarding his status may be expected in the coming weeks.

In another development, sources have confirmed to CNBC-TV18 that Reliance Retail nominees have stepped down from Dunzo’s board.

The Morning Context had earlier reported that Jha had exited Dunzo’s board on September 1. In August, Suri, Vaidhehi Ravindran from Lightrock and Reliance Retail’s Rajendra Kamath and Ashwin Khasgiwala had all stepped down from the company’s board.

Only CEO Biswas, Siddharth Talwar from Lightbox and Hongjim Kim from STIC Investments remain on the startup’s board.

Dunzo has four cofounders, and now with the exit of two cofounders only Biswas and Ankur Aggarwal are left in the company. Jha and Suri along with their co-founder Ankur Aggarwal have no ownership in Dunzo. The three of them only drew salaries and had ESOPs (employee stock ownership plans), like several other employees. Dunzo co-founder and CEO Kabeer Biswas owns about 3.6 percent of Dunzo, making him the only co-founder who holds a stake, as per a Moneycontrol report.

Contrary to the report, sources close to the company have told CNBC-TV18 that all founders have equity in the startup.

The exits come at a time when the cash-strapped grocery delivery platform is seeking to raise $20 million more from Reliance Retail. Dunzo had secured funding worth $75 million and both moves were targeted at the delivery platform turning profitable before its initial public offering (IPO) in 2025. It has so far raised close to $500 million since 2015 from Reliance, Google, Lightrock, Lightbox, Blume Ventures and several others. Reliance is the largest shareholder with a 25.8 percent stake in the company, and Google was the second-largest with around 19 percent ownership in Dunzo, according to Tracxn.

Bengaluru-headquartered Dunzo reported a net loss of Rs 464 crore in FY22. This showcases a twofold spike from reporting a net loss of Rs 229.1 crore in FY21. According to the company’s annual financial reports, the rise in operational costs led to a spike in loss. Dunzo lost Rs 230 on each Dunzo Daily order during the first half of 2022 that is from January to June. EBITDA loss in June was Rs 176 crore. The company is yet to disclose its financials for FY23.

The quick commerce platform also cut its workforce by 30 percent, meaning close to 300 employees were laid off in April in its second round of job cuts. Dunzo in the past had deferred the salary of its employees due from the month of June.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dunzo co-founder Dalvir Suri to depart from cash-strapped startup amid fundraising efforts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dalvir Suri, the co-founder of Dunzo, is set to depart after over six years at the startup, CEO Kabeer Biswas told employees in an e-mail on October 1.

Suri joined the hyperlocal delivery player in May 2015 when Dunzo was just a startup that accepted orders on WhatsApp. As co-founder, he worked alongside Biswas, Ankur Aggarwal, and Mukund Jha.

Despite Dunzo having four co-founders, Biswas is the only one who has equity in the company. While Biswas owns about 3.6 percent of Dunzo, the rest — Suri, Aggarwal and Jha — only take home a fixed amount of salary, which Dunzo has delayed several times in the past.

Suri’s departure comes at a time when the cash-strapped company has been trying to keep operations afloat and is also in the midst of a fundraising, lining up $25-30 million.

Sources at the company however indicated that Suri had tried exiting the firm earlier, but had stayed back after discussions with CEO Biswas. It was, however, difficult to hold him back this time.

Also Read: TCS ends hybrid working policy, asks employees to join office starting October 1

“As many of you are aware, Dalvir (Suri) has been taking some time off over the last few weeks, and will be moving on from Dunzo,” Biswas said in his email to employees. Moneycontrol has seen a copy of the email.

In a company-wide meeting, later this week, Dunzo will inform employees about the organisational changes after Suri’s departure.

“Dalvir (Suri) has been instrumental in building out every new line of business at Dunzo. He has been the key zero to one person from the founding team that just gets things Dun. He has been meaning to take a break for some time now – and with six plus years spent building Dunzo, he plans to move forward to pursuing new journeys,” the e-mail added.

While Suri oversaw operations across the company, he was in charge of Dunzo’s B2B business arm, Dunzo for business (D4B), which now accounts for a majority of the company’s business since its customer-centric arm has significantly reduced operations. Of the 120 dark stores, just seven remain operational now, as reported earlier.

The company had to shutter dark stores since they were loss-making and, with no clarity on the funding timeline, Dunzo has to save costs. It has planned to give up its office space in Bengaluru and even fired hundreds of employees across three rounds of layoffs.

Also Read: Bottomline | Deleveraging is the primary offer purpose in this season of IPOs

Dunzo has so far raised close to $500 million since 2015 from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and several others. Reliance is the largest shareholder with a 25.8 percent stake in the company, and Google was the second-largest with around 19 percent ownership in Dunzo, according to Tracxn, a private markets data provider.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Startup Digest: Spinny fires 300 employees, Zomato posts first ever profit, Dunzo integrates its seller app with ONDC & more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Spinny hands pink slips to 300 employees as it merges Truebil and Max

Tiger Global-backed Spinny has joined the growing list of startups to have sacked employees. The used car retailing platform has laid off over 300 employees in a cost-cutting exercise. The move comes as the company merged its budget and luxury offering platforms — Truebil and Max into the main platform.

The startup has about 6,000-6,200 employees and the layoffs will affect 4.5 percent of its workforce.

“This business reorganisation will strengthen our go-to-market business model, reduce costs and improve our margin profile, putting us on an expedited path to profitability. However, it will impact approximately 4.5% of our total workforce as we consolidate our operations under a single brand,” said the company spokesperson.

Zomato posts first ever profit; Blinkit biz turned contribution positive

Online food delivery platform Zomato turned profitable for the first time during the June quarter of this fiscal. The profitability has been aided largely by operational improvement in the company’s food business. Zomato’s food delivery margins sored to 13.6 percent.

The food delivery platform reported a consolidated net profit of Rs 2 crore for the June quarter against a net loss of Rs 186 crore in the year-ago quarter. The consolidated revenue from operations surged 71 percent year-on-year to Rs 2,416 crore, compared to Rs 1,414 crore in the corresponding quarter of last fiscal.

The online food delivery giant said its quick commerce (Blinkit) business turned contributive positive for the first time ever in the month of June 2023. The food delivery platform said it can deliver adjusted EBITDA breakout in the quick commerce business in the next four quarters.

AI chip firm Tenstorrent raises $100 million from Hyundai, Samsung

AI chip maker Tenstorrent has raised $100 million from Hyundai Motor Group and a Samsung investment fund. The round saw participation from Fidelity Ventures, Eclipse Ventures, Epiq Capital and Maverick Capital, among others.

Tenstorrent sells AI processors and licenses AI and RISC-V IP to customers that want to own and customise their silicon. Funding will be used to accelerate the company’s product development, the design and development of AI chiplets, and its ML software roadmap, the company said.

Headquartered in Toronto, Canada, the company has offices in Austin, Texas, and Silicon Valley, and global offices in Belgrade, Tokyo, and Bengaluru.

pi Ventures raises Rs 702 crore in the final close of its second fund

Early-stage venture capital fund pi Ventures, which invests in artificial intelligence and deeptech startups, has marked the final close of its second fund at Rs 702 crore ($82 million). The VC had exercised the green shoe option by raising Rs 137 crore more than the base target of Rs 565 crore.

The fund will invest in startups focused on AI and other forms of deeptech across sectors, but not limited to Spacetech, Biotech, Blockchain and Material Science among others. The fund is targeting to invest in 20-25 such startups in the coming two to three years.

pi Ventures will continue to focus on early stage investments through this fund and so far has invested in seven startups – ImmunitoAI, Ottonomy.IO, Silence Laboratories, Preimage, Zero Cow Factory and two other ventures.

UcliQ receives angle funding from EvolveX Accelerator

UcliQ, a B2B Marketplace for Chicken and Seafood, has raised Rs 70 lakh in an angel funding round led by EvolveX Accelerator in its second cohort. The round also witnessed the participation of HESA founder Vamsi Udayagiri.

According to the startup, the funds will be used for reaching 20,000-25,000 businesses across Delhi/NCR, Bangalore, and Hyderabad in the next 12 months. The firm is aiming to achieve a revenue of Rs 15 crore.

UcliQ provides meat supply chains by providing transparent and secure digital platform that connects buyers and sellers, including HoReCa (hotels, restaurants and cafes), manufacturers, wholesalers, brands, and other businesses.

IPV invests an undisclosed sum in Wallter Systems

Space saving furniture brand Wallter Systems has raised an undisclosed amount in a seed funding round led by Inflection Point Ventures.

The funds will be utilized for brand building and scaling up the operations, the company said in a statement.

Wallter Systems said it has added over 50,000 net usable square feet to homes at a cost that is only 1/10th of the typical expenses.

Dr Mantra raises bridge round from femtech startup Sirona

Ayurvedic wellness startup Dr Mantra has raised a bridge round from Deep Bajaj and Mohit Bajaj, founders of femtech Brand, Sirona.

The brand intends to utilize the funds for business growth, aiming to double its operations before pursuing a Series A funding round.

The company claims to have tripled its revenues while maintaining positive unit economics at Rs 60 Lakhs in the last six months.

Dunzo’s seller app to onboard 20,000 local merchants on ONDC

Quick commerce player Dunzo has announced the integration of its seller app with the government’s Open Network for Digital Commerce (ONDC) network, which will enable thousands of India’s small and medium merchants to access new customers online.

Over 1,500 local merchants will be onboarded through the Dunzo seller app in Week 1, with a target to onboard a total of 20,000 merchants across food, grocery, pharma, and other essentials in the next 45 days, according to the company.

“It’s been less than two weeks since we’ve been live on the network, and we’ve already hit peak order volumes of more than 3,000 a day for groceries and other essential items through our local merchants. We have merchant partners who’ve also seen a 3X increase in their daily orders,” Dalvir Suri, Dunzo co-founder and Head of Dunzo Merchant Services.

Pine Labs appoints former OnePlus India CEO Navnit Nakra as chief revenue officer

Merchant commerce omnichannel platform, Pine Labs today has appointed former OnePlus India CEO Navnit Nakra as their chief revenue officer.

As per the company, Nakra will be responsible for developing and executing growth strategies, new business generation, streamlining processes to attain efficiencies and maximising revenue streams for the payments business in India.

He has also worked for Apple where he was heading the Affordability business for India. He started his career with Citibank where he spent more than 14 years across consumer and institutional banking.

Pristyn Care forays into Bangladesh; lines up Rs 100 crore to fund expansion

Healthcare delivery startup Pristyn Care has commenced operations in Bangladesh and will invest Rs 100 crore over the next two years to expand operations in the neighbouring country.

The company plans to have five patient care centres in Dhaka and Chattogram(Chittagong) by March 2024. It also aims to hire 200 employees across various departments as part of the expansion plans.

“With the country’s (Bangladesh) healthcare market expected to reach USD 14 billion by the end of 2023, we are committed to the growth of healthcare in Bangladesh. Over the next two years, we’ll invest Rs 100 crore to establish a robust healthcare infrastructure,” Pristyn Care Co-Founder Harsimarbir Singh said. The investment would be utilised to set up patient care centres, he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fresh layoffs, legal notices and salaries deferred: Cash-strapped Dunzo grapples for survival

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Quick commerce platform Dunzo, which is facing a severe cash crunch, has begun a fresh round of layoffs which will affect 150-200 employees. An affected staff member told CNBC-TV18 on condition of anonymity that she received a call from senior management, informing that Dunzo would be letting go of certain employees as “the business is not doing well”.

The employee further added that she needs to serve a two-month notice and her dues will only be cleared post that. This is the grocery delivery platform’s third round of layoffs within the last seven months, as the company faces mounting troubles when it comes to cash flow. Dunzo cut its workforce by 30 percent, meaning close to 300 employees were laid off in April in its second round of job cuts.

When CNBC-TV18 reached out to Dunzo, they refused to comment on the layoffs.

It’s important to note that the development comes a day after CNBC-TV18 reported salary delays at the startup. Dunzo has further deferred the salary of its employees due from the month of June, until either late August or the first week of September, CNBC-TV18 had learnt from the sources.

“The pending salaries for June will now be paid on September 4, 2023. Additionally, the July salary for all team members will be paid only on September 4th along with the August salary,” according to an email Dunzo sent to its employees on Friday.

The earlier deadline set for the deferred payment which was 50 percent, had been July 20. Dunzo had deferred paying June salaries to employees earning Rs 75,000 per month, irrespective of what their pay package was.

CNBC-TV18 has also learnt that Dunzo has been served legal notice by tech giants Meta and Google. Facebook India Online Services Private Limited (FBI) and Nilenso, a software consultancy firm have served legal notice to Dunzo over non-payment of dues. Earlier, Google, which is the quick commerce startup’s second-largest backer, issued a legal notice, asking Dunzo to clear unpaid dues.

“Dunzo defaulted in making its payments to FBI under the Contract, despite repeated efforts, verbally and in writing, to rectify the delinquency, Dunzo acknowledged its liabilities and started making the payment to FBI. However, the payment was insufficient to settle all the outstanding balances under the account,” the legal notice read which was accessed by Moneycontrol.

“FBI appropriated another attempt by sending a follow-up email and making a few calls on the lookout for payment status or payment plan (“Plan”) for the entire outstanding. However, Dunzo failed to provide the plan, thus, the account remains suspended,” the notice further read, adding that Dunzo had agreed to pay FBI’s dues within 30 days from the date of invoices raised by FBI.

Facebook and Google have not responded to CNBC-TV18’s queries, whereas Dunzo refused to issue a comment.

Dunzo has been struggling for a while now. Of the $75 million that it raised in April, only about $45 million has come through. The platform is now seeking to raise $20 million more from Reliance Retail, which is Dunzo’s largest shareholder.

The quick commerce player has even shut 70 percent of its dark stores and sources told CNBC-TV18 that Dunzo Daily has been permanently shut and it’s only the logistics and B2B arm of the company that’s sustaining at the moment.

Bengaluru-headquartered Dunzo reported a net loss of Rs 464 crore in FY22. This showcases a twofold spike from reporting a net loss of Rs 229.1 crore in FY21. According to the company’s annual financial reports, the rise in operational costs led to a spike in loss. Dunzo lost Rs 230 on each Dunzo Daily order during the first half of 2022 that is from January to June. EBITDA loss in June was Rs 176 crore. The company is yet to disclose its financials for FY23.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dunzo further defers payment of June salaries, shifts deadline to late August or early September

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Grocery delivery platform Dunzo has further deferred salary of its employees due from the month of June, until either late August or the first week of September, CNBC-TV18 had learnt from the sources.

“The pending salaries for June will now be paid on September 4, 2023. Additionally, the July salary for all team members will be paid only on September 4th along with the August salary.” according an email Dunzo sent to its employees today.

The earlier deadline set for the deferred payment which was less than 50 percent, had been July 20. Dunzo had had deferred paying June salaries to employees earning Rs 75,000 per month, irrespective of what their pay package was.

Sources told CNBC-TV18, “Dunzo is looking at its business to see what’s working for them or not, there are some projects they are working on which they need to focus on and that’s the reason why the salaries are being deferred.” The company however denied to comment on the notable delay.

The development comes after the quick commerce platform cut its workforce by 30 percent, meaning close to 300 employees were laid off in April in its second round of job cuts. Dunzo had also secured funding worth $75 million and both moves were targeted at the delivery platform turning profitable before its initial public offering (IPO) in 2025.

According to a report by the Economic Times, Dunzo is seeking to raise $20 million more from Reliance Retail.

Dunzo has so far raised close to $500 million since 2015 from Reliance, Google, Lightrock, Lightbox, Blume Ventures and several others. Reliance is the largest shareholder with a 25.8 percent stake in the company, and Google was the second-largest with around 19 percent ownership in Dunzo, according to Tracxn.

Bengaluru-headquartered Dunzo reported a net loss of Rs 464 crore in FY22. This showcase a twofold spike from reporting a net loss of Rs 229.1 crore in FY21. According to company’s annual financial reports the rise in operational cost led to the spike in loss. Dunzo lost Rs 230 on each Dunzo Daily order during the first half of 2022 that is from January to June. EBITDA loss in June was Rs 176 crore. The company is yet to disclose its financials for FY23.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dunzo defers June salaries for employees, no layoffs, says sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Grocery delivery platform Dunzo has decided to defer less than 50 percent of the salary of its employees for the month of June, CNBC-TV18 has learnt from sources close to the company.

The development comes after the quick commerce platform cut its workforce by 30 percent, meaning close to 300 employees were laid off in April in its second round of job cuts. Dunzo had also secured funding worth $75 million and both moves were targeted at the delivery platform turning profitable before its initial public offering (IPO) in 2025.

While reports suggest that the decision was primarily due the company facing issues managing its cashflows, sources close to the company told CNBC-TV18 said, the company was not struggling financially and the move has been made due to certain shift in priorities within the company.

Sources also denied reports on layoffs happening soon, saying no such talks are happening within the company. An Economic Times report had suggested that the quick commerce may finalise its plans to terminate more jobs.

Bengaluru-headquartered Dunzo reported a net loss of Rs 464 crore in FY22. This showcase a twofold spike from reporting a net loss of Rs 229.1 crore in FY21. According to company’s annual financial reports the rise in operational cost led to the spike in loss.

Dunzo lost Rs 230 on each Dunzo daily order during the first half of 2022 that is from January to June. EBITDA loss in June was Rs 176 crore. The company is yet to disclose its financials for FY23.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dunzo lays off nearly 300 employees and secures $75 mn funding ahead of IPO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Grocery delivery platform Dunzo has cut its workforce by 30 percent, meaning close to 300 employees have been laid off and the firm has also secured funding worth $75 million, sources told CNBC-TV18 on April 6. Both the moves shall help the delivery platform turn profitable before its initial public offering (IPO) in 2025.

Dunzo informed its employees about the layoffs in a townhall on April 5 and said that the company was looking at a pivot in business strategy to achieve profitability ahead of planned IPO.

It must be noted that earlier in January, Dunzo founder Kabeer Biswas had told CNBC-TV18 that his firm was looking at organisational changes and re-organisation that could affect employees.

The company has also secured a funding of $75 mn through convertible notes with existing investors, Google and Reliance Industries likely to be among investors, sources said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow