Dunzo, facing a cash crunch, has delayed salary payments 

The company has informed its employees that their pending dues will be credited on September 4. The payroll team cited the need to streamline cash flow as the reason for the delay


Dunzo, the quick-commerce player, is facing a severe cash crunch and has been struggling to meet its salary obligations. The company recently informed senior employees that the remaining portion of their June salaries, originally due in July, will now be deferred until September 4. This decision affects around 500 employees, accounting for 50 percent of Dunzo’s workforce. Initially, the company had promised to clear all dues by July 20 but had to push the deadline as it works on resolving cash flow issues and seeks additional investment from investors.

To improve its financial situation, Dunzo has also implemented a salary cap of Rs 75,000 per month for all employees, regardless of their previous pay package. This move aims to conserve funds and stabilise the company’s financial health.

The payroll team conveyed the delay in salary payouts to employees through an email, expressing regret for the inconvenience caused and asking for their understanding and support during this challenging time. The pending salaries for June, along with July and August salaries, will now be paid on September 4, 2023.

Dunzo’s cash flow problems have led to concerns about potential layoffs and voluntary exits among the workforce. Despite raising $75 million in April, the company continues to face high cash burn rates, prompting cost-cutting measures. As part of its strategy, Dunzo has closed approximately 50 percent of its dark stores and exited unprofitable markets while focusing more on sourcing products through a marketplace model

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