Dunzo Defers Salary Dues For Employees Until September, Faces Financial Constraints

Dunzo, a hyperlocal delivery startup backed by Reliance Industries, has announced that it will defer the payment of pending salary dues to its employees until September, Reuters reported

Dunzo, with the support of Indian conglomerate Reliance, has encountered financial constraints, leading to significant measures such as a 50% reduction in dark stores, employee layoffs, fundraising efforts, and salary payment delays.

Initially, the company deferred June salaries for certain employees to July 20, but it has now extended the timeline for these payments, along with increments and variable pay, until September 4, according to a recent communication.

Around 500 employees, or 50% of Dunzo's personnel, had their June salaries postponed, according to Moneycontrol, which broke the news on Wednesday.

A request for clarification from Reuters was not immediately answered by Dunzo, which earlier this year reportedly set a salary cap of 75,000 rupees ($913.58) per month.

The company laid off about 30% of its personnel while simultaneously securing $75 million in capital from investors like Reliance Retail and Alphabet Inc (GOOGL.O).