Business Today has discovered from sources that Reliance Retail and Google-backed hyperlocal fast commerce business Dunzo has postponed 50% of some employees’ salaries.
In-depth details about Dunzo, sponsored by Google and Reliance, delays 50% of employee salaries
These compensation reductions have been made for employees at the management grade and above, according to the sources.
“All employees at the management grade and above earned only 50% of their June salaries. The source reported, “The rest firm says they’ll pay it later.
This was confirmed by another employee of the business, who said, “We were told we would receive the remaining portion of our income between July 15 and July 25. A liquidity shortage has led to rumors of reorganization.
According to a Business Today report from April of this year, the rapid commerce startup fired 30% of its employees after receiving $75 million in capital from Reliance Retail, Google, and other investors. After the financing and employment layoffs were announced, firm management also covered a change in business strategy in a town hall meeting for the entire organization. The rapid commerce company made the decision to close 50% of its dark locations nationwide.
According to Ministry of Corporate Affairs records, the company claimed total revenue of Rs 67.7 crores for FY 2021–22 compared to expenses of Rs 531.7 crores.
Operating revenue increased from Rs 25.1 crores in FY21 to Rs 54.3 crores in FY22. Despite this, the consolidated loss increased by two times year over year to Rs 464 crores. Employee benefit expenses accounted for 138 crores of the company’s total expenses. The company’s advertising and promotional costs came next, totaling Rs 64.4 crores, about six times as much as the Rs 11 crores they had incurred in FY21.
