Cash strapped quick commerce company, Dunzo, is undertaking a fresh round of layoffs through which it wants to reduce its workforce by around 30-40%, a section of the employees who have received intimation to this effect told Fe. It has already sacked close to 400 employees so far this year in two rounds. The company is also in advanced stages to close a $25-30 million funding round, in which its key investors Reliance Retail, Googel, and Lightrock are expected to participate. However, the valuation is still not decided.
Sources said that the participation by these investors will be done on a pro-rata basis, which means that the companies concerned will put in money as per their existing stake in the company. With 25.8% stake, Reliance Retail is the single largest stakeholder in Dunzo, and at around 19%, Google India is the second largest investor.
If Dunzo is able to raise funds, it will be a much needed breather for the company, which has received several legal notices for non-payment. It has also not paid its employees on time. Dunzo had earlier informed its employees that it would defer unpaid salaries for the months of June and July to September, when it would pay them with August salary.
On the layoff front, the company has informed the employees that they would receive their full and final settlements in January. “They gave me two options – resign and leave today and get full and final settlement in January or February, or resign today and give notice period and get due September salary in October and full and final settlement in January or February,” said an employee who is on the layoff list.
Dunzo did not reply to a query seeking clarity on the fresh round of layoffs and the fund raise.