Dunzo further delays salaries, more layoffs likely as it vacates headquarters

Quick commerce startup Dunzo, which has been struggling to shore up fresh funds, has now told employees that pending salaries for June and July would be paid in November. The cash-strapped firm, which is backed by Reliance Retail, has delayed paying salaries on several occasions for these two months.

The latest communication came from founder and chief executive Kabeer Biswas in an internal all-hands call on Friday.

The Bengaluru-based startup is also looking to move out of its headquarters on Wind Tunnel road as part of further cost-cutting measures, Biswas told employees but did not clarify if it would shift to a new location.


He also warned employees of further layoffs in case the cashflow situation worsened, without giving further details. He, however, promised that the salary for September would be paid on time in the first week of October, people aware of the matter told ET.

On September 13, ET reported that Dunzo was going to pay salaries for the month of August via the payroll financing app OneTap. Over the next two days, employees protested downloading the OneTap app and putting in their credentials as they feared liability for the salary financing, people in the know told ET, leading to the firm gathering employee details and sending the data to OneTap.

A number of employees were yet to receive their salaries for August as of Friday evening.