Cash-strapped Dunzo to pay 12% annual interest on deferred salaries, clear all dues by September 4 | Mint
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Business News/ Companies / News/  Cash-strapped Dunzo to pay 12% annual interest on deferred salaries, clear all dues by September 4
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Cash-strapped Dunzo to pay 12% annual interest on deferred salaries, clear all dues by September 4

Instant grocery app, Dunzo, in a written email has announced to pay 12% of yearly interest to its employees on deferred salary. The company aims to clear all its pending dues by September 4

Dunzo earlier raised $240 million in January 2022 in a funding round led by Reliance Retail Ventures Ltd. (Photo: Getty Images) (MINT)Premium
Dunzo earlier raised $240 million in January 2022 in a funding round led by Reliance Retail Ventures Ltd. (Photo: Getty Images) (MINT)

As the legal and financial troubles refuse to end for Dunzo, the cash-strapped firm has assured its employees of paying 12% yearly interest on their held-back salary component, reported Moneycontrol. The startup has also planned to clear all dues by September 4.

The company is currently reeling under immense financial trouble and recently received 7 legal notices from different companies for unpaid dues. 

The company is also unable to pay its employees. On July 3, the startup told its employees that it will be deferring salaries for around 500 of them and will also cap salaries at 75,000 from June. The decision was made irrespective of individual employee's payscale.

Also Read: Reliance, Google backed Dunzo delays 50% salary this month, employee says, ‘rumours of restructuring…’

As per the old information, the startup had to clear all the dues by July 20, but Dunzo extended the deadline to September 4.

“Thank you for your patience and continued support. We understand the inconvenience this (delay in salaries) has caused and want to ensure that we provide the possible support for the delay," Dunzo’s payroll team said in an email to employees on July 27, reported Moneycontrol.

Also Read: Dunzo lays off 30% of its workforce while securing $75 million funding: Reports

Mint could not independently confirm the email statement.

The email also said, “There will be interest paid of 12 percent per annum."  The commitment made by the company to its employees, if fulfilled, can bring huge relief and alleviate their frustration with the company's management. 

Despite the promise made by the firm, there are chances that the company might not be able to provide interest amount to its employees. It is because the long list of dues pending by the company. Dunzo is yet to clear vendor dues, deposit the tax deducted at source (TDS), etc. Adding on to the woes, around seven vendors of Dunzo have sent legal notice to the company for their unpaid dues.

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Published: 28 Jul 2023, 07:56 AM IST
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