Dunzo co-founder Dalvir Suri steps down, company to undergo organisation-wide restructuring

Amid cash crunch in the hyper local delivery platform, Dunzo, its co-founder Dalvir Suri will step down from his position. In addition to this, the Reliance Industries-backed startup will also undergo an organisation-wide restructuring from this quarter. 

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

Till now, there has been no clarification on the exact date when Dalvir Suri will step down from his position. Moreover, there was no announcement related to who will replace him in the company. 

The recent exit has come at a time when the local delivery platform is struggling to generate fund and is trying all sorts of measures to cut its spending. 

Also Read: Dunzo pushes pending June, July salary payments to October

The company has been struggling to strike a deal in the past few months and has announced at least three rounds of layoffs. Other than trimming its workforce, the company also deferred or reduced salaries for some employees as well as reduced 50% of its dark stores.

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

There was not much detail about the restructuring of the firm. Dalvir Suri joined the firm in May 2015, about a year after it was founded. Later he began leading its business-to business unit, Dunzo Merchant Services(DMS).

"Dalvir has been instrumental in building out every new line of business at Dunzo ... and the DMS business has very capable leadership that's picking up directly after him," CEO and co-founder Kabeer Biswas said in a statement.Ankur Agarwal and Mukund Jha are the company's other co-founders.

Dunzo is in advanced talks to close a $25 million to $30 million funding round that will increase Reliance Retail's 25.8% stake in the firm, reported Reuters citing Moneycontrol report.

Amid cash-crunch, Dunzo employees face delay in salary payment

Amid its struggle to secure funding, the company is failing to provide salary to its employees on time. The quick-commerce startup further delayed paying August salaries after promising to clear them by the end of September's first week.

In July, the company had assured its employees of paying 12% yearly interest on their held-back salary component, and had also committed them to clear all dues by September 4. However, the company failed to do so on time. The company also faced legal notices from seven of its partner vendors for their unpaid dues.