Dunzo Lays Off 75% Of Workforce Amid Financial Struggles
The decision comes as the company grapples with severe financial difficulties, including overdue payments to employees and vendors
Dunzo, the hyperlocal delivery platform, has reportedly undertaken significant layoffs, reducing its workforce by 75 per cent. The decision comes as the company grapples with severe financial difficulties, including overdue payments to employees and vendors.
According to media reports, Dunzo has laid off approximately 150 employees, representing three-quarters of its workforce, in an effort to cut costs.
Following these layoffs, Dunzo is now operating with a skeleton crew of just 50 employees, primarily focused on its core supply and marketplace operations. The company is aiming to streamline operations and improve cash flow as it faces mounting pressure to meet its financial obligations.
The layoffs reportedly took place on 31 August 2024. Affected employees were informed 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.
Originally launched as a concierge service, Dunzo has experienced both rapid growth and subsequent setbacks. At its peak, the company was valued at $775 million, but it has recently faced challenges in closing crucial funding rounds.
In May 2024, Dunzo was reportedly close to securing $22-25 million through a combination of equity and debt from new and existing investors. However, the deal fell through, leading to further financial strain. By mid-July 2024, the company informed its employees that it was in the final stages of obtaining funds and expected to settle dues within 10-15 days. Despite these assurances, continued delays have left the promised funding still unsecured.
