Dunzo, a prominent quick-grocery delivery provider, has faced challenges in paying its current employees their November salaries despite its partnership earlier this year with OneTap, a revenue financing firm, according to recent media reports.
The company informed its employees this week about assurances from an investor regarding the expected funds, indicating that these funds would likely be received by early next week. Dunzo assured its workers that once the funds are received, they intend to release the pending November salaries. The company mentioned plans to manage salaries for the next few months until finalizing an equity round in January.
However, Dunzo acknowledged that the funding is contingent on external factors, advising its members to prepare for a potential timeline extending to December 15, 2023. They expressed regret for the delay and requested continued support from their employees during this challenging period.
This delay in salary payments adds to a series of similar occurrences throughout the year. Initially, the company announced an inability to pay salaries until early September, subsequently pushing the deadline further from July 20. Further delays followed, with payments being postponed to the first week of October due to funding challenges. Subsequently, November salaries were delayed amid an ongoing financial crunch.
To mitigate costs, Dunzo recently shifted employee accounts from Google Workspace to Zoho.
Despite these challenges, the company faced a significant loss of Rs 1,800 crore in FY23, marking a substantial 288 percent increase from the previous year's figures. Additionally, Dunzo witnessed the departure of several key executives, including co-founders and its finance head, impacting its leadership structure.
(With Agency Inputs)
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