New Delhi (10/07/2023): The hyperlocal rapid commerce business Dunzo, which is supported by Reliance Retail and Google, has postponed 50% of some employees’ salaries. According to the sources, these cuts have been made to the salaries of employees in the management grade and above.
The source quoted by BusinessToday said, “All employees manager grade and above have only received 50 per cent of the salary of June. Rest, company says they will pay it later.”
Another employee also confirmed, “We were informed that we would get the rest of the salary between July 15th to 25th. There are rumours of restructuring amid a cash crunch.”
According to Business Today, the rapid commerce startup let off 30% of its employees after collecting $75 million in capital from Reliance Retail, Google, and other investors in April of this year.
Following the announcement of financing and job layoffs, firm management held a company-wide town hall to address a shift in business strategy. The quick commerce chain chose to close half of its dark shops across the country.
According to Ministry of Corporate Affairs records, the company reported a total revenue of Rs 67.7 crores in the FY 2021-22 financial results, compared to expenses of Rs 531.7 crores.
The operating revenue was Rs 54.3 crores, an increase from Rs 25.1 crores in FY21. Despite this, the combined loss was Rs 464 crores, up two times year on year.
Employee benefit charges accounted for Rs 138 crores of the company’s expenses. This was followed by its advertising and promotional expenses, which totalled Rs 64.4 crores, about six times the Rs 11 crores that incurred in FY21.
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