Dunzo, the hyperlocal delivery platform, has announced significant layoffs, with 75% of its workforce being affected due to financial difficulties, including overdue payments to employees and vendors. According to reports, around 150 employees have been laid off as part of a cost-cutting measure, leaving the company with a core team of just 50 employees focused on supply and marketplace operations.
The job cuts are part of Dunzo’s broader strategy to reduce expenses and improve cash flow as it faces increasing financial pressure. The layoffs were reported to have occurred on August 31, 2024, according to Layoffs.fyi, an online tracker for job cuts.
Affected employees were notified via email, with Dunzo assuring them that pending salaries, severance, leave encashment, and other dues would be paid once the company secures the necessary funds. Despite assurances, there has been a delay in securing the promised funding, which has further strained the company’s finances.
Dunzo, which began as a concierge service, has gone through various growth phases but is now struggling to close a crucial funding round. The company was reportedly close to securing $22-25 million through a mix of equity and debt from investors in May 2024, but the deal ultimately fell through. Despite ongoing efforts to obtain funds, the promised capital has not yet materialized, leading to continued financial instability.
As Dunzo navigates these challenging times, it is also exploring ways to diversify its revenue streams beyond its core focus on merchant services. This move is seen as essential to stabilizing its finances and continuing to provide services to its customers. The layoffs have been met with concern and disappointment among affected employees and industry observers, raising questions about the company’s future and its ability to adapt to the reduced workforce.
