Dunzo, the quick commerce startup that has been battling a financial crunch for some time now, is desperately trying to obtain funds. According to Financial Express, the firm is readying to reduce headcount by at least 30 per cent. This will not be the first time the Reliance Retail-backed firm is reducing headcount this year. About 400 people have already been let go.
As per media reports, another crucial funding round is on the cards where existing investor Reliance Retail is also expected to pump in capital along with other investors. While Dunzo hopes to raise about $35million, whether this will be enough to take care of its financial needs remains to be seen.
Reliance Retail has about 25 per cent stake in the company, which makes it the largest stakeholder, followed by Google India with about 19 per cent stake.
Recently, Dunzo had collaborated with payroll financing firm, OneTap, to pay the August salaries of its staff. Its employees were instructed to download a particular app and do the needful in terms of the required KYC process so that their salaries could be transferred on 15 September. It had not been paying its employees their salaries on time. Admist the funds crisis, it had told his employees that they may have to wait till October for their June and July salaries, and that they would be paid the salaries along with 12 per cent interest.