Dunzo Dark Stores Shut In Bengaluru Amid Salary Delays
Dunzo, a cash-strapped rapid commerce business, witnessed the lack of staff returning at its Bengaluru dark stores due to a July salary delay. As a result, its dark stores in Indiranagar, Richmond Town, and HSR Layout in the city ceased operations on Wednesday. Its two stores in Kormangala and ITI Layout have been closed since Monday.
After scaling back operations due to a severe cash shortage, the company now operates seven dark storefronts in its home city of Bengaluru. Previously, it was said to have operated roughly 250 outlets.
According to media sources, the salaries of approximately 70 off-roll workers across its dark store network in the city have been deferred. Workers in this category include those in charge of packing groceries and delivering them to delivery executives.
Rather than depending on the typical dark store approach used by its competitors, Dunzo is focusing on acquiring its products directly from the nearby supermarkets and merchants to distribute to clients.
Last month, the cash-strapped company postponed the June and July pay of more than half of its 1,000-person employees to the first week of September. It also set a salary cap of Rs. 75,000 for all employees, regardless of their compensation package.
Dunzo's wage deferrals come despite the company raising $75 million in convertible notes in April of this year, highlighting its significant cash burn rate.
