Reliance, Google backed Dunzo delays 50% salary this month, employee says, ‘rumours of restructuring…’ | Mint
Active Stocks
Fri Feb 23 2024 15:58:13
  1. Tata Steel share price
  2. 145.50 -0.24%
  1. State Bank Of India share price
  2. 759.40 -0.86%
  1. HDFC Bank share price
  2. 1,420.90 0.08%
  1. NTPC share price
  2. 337.70 -0.54%
  1. ITC share price
  2. 411.60 -0.65%
Business News/ Companies / News/  Reliance, Google backed Dunzo delays 50% salary this month, employee says, ‘rumours of restructuring…’
BackBack

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

Dunzo, a hyperlocal quick commerce company, has reportedly deferred 50% of salaries for employees in manager-level positions and above due to a cash crunch.

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

Dunzo, a hyperlocal quick commerce company backed by Reliance Retail and Google, has reportedly deferred 50% of salaries for employees in manager-level positions and above, according to sources.

“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," the source told Business Today.

Another employee 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."

In April of this year, the quick commerce company, after securing a substantial $75 million funding round from investors including Reliance Retail and Google, made the difficult decision to lay off 30 percent of its workforce. This move came in the wake of the funding announcement and was accompanied by a company-wide town hall meeting where the management discussed a pivot in the business model. As part of this strategic shift, the company also decided to close down 50 percent of its dark stores spread across the country.

Financial records from the Ministry of Corporate Affairs filings for the fiscal year 2021-22 revealed the company's challenging financial situation. Despite reporting a total revenue of 67.7 crores, the expenses incurred by the company amounted to a staggering 531.7 crores. The operating revenue showed an improvement, reaching 54.3 crores, up from 25.1 crores in the previous fiscal year. However, the company experienced a consolidated loss of 464 crores, which was twice the loss incurred in the previous year.

The largest expense for the company was employee benefits, amounting to 138 crores. This was followed by significant advertising and promotional expenses, which soared to 64.4 crores compared to the previous year's 11 crores.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 10 Jul 2023, 02:20 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App