Dunzo, a hyperlocal quick commerce company backed by Reliance Retail and Google, has deferred 50% of the salary for certain employees.
According to sources, Dunzo, the quick commerce company backed by Reliance Retail and Google, has deferred 50% of the salary for employees in the manager grade and above. The remaining amount is expected to be paid between July 15th and 25th, as the company faces a cash crunch and rumors of restructuring.
In April this year, after securing $75 million funding from Reliance Retail, Google, and other investors, Dunzo laid off 30% of its staff. The company also announced the closure of 50% of its dark stores across the country, and discussed a pivot in the business model during a company-wide town hall.
According to the financial results for FY 2021-22, Dunzo reported a total revenue of Rs 67.7 crores, while its expenses stood at Rs 531.7 crores. The operating revenue increased to Rs 54.3 crores, compared to Rs 25.1 crores in FY21. However, the company incurred a consolidated loss of Rs 464 crores, which is twice the loss from the previous year.
The major expenses for the company included employee benefit expenses amounting to Rs 138 crores, followed by advertising and promotional expenses of Rs 64.4 crores, a significant increase from Rs 11 crores in FY21.
Business Today has reached out to Dunzo for a response on the salary deferral issue.