Cash-strapped quick-commerce startup Dunzo has further delayed paying the salaries of several employees in August, despite previously promising to pay them by the end of this week. Reliance Retail has a partnership with Dunzo and holds a 26% stake in the company.
Cash-strapped quick-commerce startup Dunzo has further delayed paying the salaries of several employees in August, despite previously promising to pay them by the end of this week. Dunzo’s co-founder and CEO Kabir Biswas informed employees in a video call on Friday that pending August salaries will now be paid by next Tuesday or Wednesday.
Biswas mentioned that the company had received some funds, which helped it make the payment for some employees’ August salaries. However, due to ongoing financial needs, payments for other employees have been delayed. He did not specify whether Dunzo had secured new funding but expressed hope for a new funding deal to close in the coming weeks.
Reliance Retail-backed Dunzo had previously committed to paying all employee salaries for August by the end of this week, with the initial deadline being September 4th. The company had also earlier acknowledged delays in paying June and July salaries without providing a future payment date.
Dunzo has been grappling with funding struggles amid disagreements between stakeholders and investors over valuation. Reliance Retail, its largest investor, holds a 26% stake in Dunzo.
Dunzo is also facing legal notices from vendors regarding pending vendor payments. The company reportedly owes vendors approximately INR 11.4 crores. Over the past eight months, the company has laid off nearly 400 employees.