Reliance- and Google-backed Dunzo defers salary of staff

Hyperlocal quick commerce company Dunzo, which is backed by Reliance Retail and Google, has deferred salary of some employees, Business Today has learned from sources.

These cutbacks have been made in the salary of staff who are in the manager grade and above, the sources noted.

“All employees manager grade and above have only received 50 per cent of the salary of June. Rest company says they will pay it later,” the source said.

 Another employee working at the company confirmed this and added, “We were informed that we would get the rest of the salary between July 15th to 25th. There are rumours of restructuring amid a cash crunch.”

Business Today has reached out to Dunzo for a response on the same. 

The quick commerce company laid off 30 per cent of its staff after securing $75 million funding from Reliance Retail, Google, and other investors, Business Today reported in April this year. The company management also discussed a pivot in business model in a company-wide town hall after the announcement of funding and job cuts was made. The quick commerce company decided to shut 50 per cent of its dark stores across the country.

As per Ministry of Corporate Affairs filings, in the FY 2021-22 financial results, the company reported a total revenue of Rs 67.7 crores, as compared its expenses, which stood at Rs 531.7 crores.

The operating revenue stood at Rs 54.3 crores, up from Rs 25.1 crores of FY21. Despite that,  the consolidated loss stood at Rs 464 crores, up two times YoY.  The company’s biggest expenses driver was employee benefit expenses, which stood at Rs 138 crores. This was followed by its advertising and promotional expenses, which stood at Rs 64.4 crores, up almost 6 times as compared to Rs 11 crores which was incurred in FY21. 

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