Amidst a liquidity crisis, Dunzo has expressed its ambition to achieve its first fully profitable year in FY25. This also clarified that the company will now be able to clear all outstanding salaries and TDS payments in batches.
The news as conveyed in an email to former employees on 1 April, highlights the company’s imminent transition to profitability. The convenience platform, backed by Reliance Retail, also disclosed plans for team expansion while emphasising a strategic focus on specific categories commencing July 2024.
As per media reports, the company informed former employees—whose salaries and full settlements had been pending since July last year—that Dunzo will gradually clear outstanding salaries and TDS payments in batches starting 1 April. It aims to address other pending obligations using its constrained cash flows over the ensuing four weeks.
While the company intended to settle all dues in one go, given the prevailing circumstances, it will make incremental completion over the coming weeks. Furthermore, it acknowledged the anticipation surrounding pending payments and pledged to respond promptly to inquiries, albeit requesting patience due to bandwidth constraints.
Dunzo has previously postponed salary payments, citing preparations for additional funding to fulfil financial obligations. In January, the company informed employees about ongoing efforts to devise a long-term strategy for settling liabilities and committed to sharing a payment timeline by month-end.
Last October, Dunzo assured employees that salaries for June and July, along with final settlements, would be disbursed by February 2024, accompanied by a 12 per cent per annum interest based on service duration.
In December, several partner stores, including Easy Bazar and MK Retail, temporarily ceased operations as Dunzo delayed payments for grocery orders. Operations resumed later that week following the clearance of dues.