Dunzo Delays Salary Payments Amid Funding Crisis: What Lies Ahead?

Quick-commerce startup Dunzo, backed by Reliance Retail, is facing financial turbulence that has led to the deferral of salary payments for its employees. The company has been grappling with a funding crisis, resulting in significant challenges. Reports suggest that Dunzo has already laid off 30% of its workforce and is encountering pressure from vendors due to outstanding dues. The most recent development includes the deferral of salary payments for the months of June and July, with employees being informed that they will receive their wages in November.

The Ongoing Funding Crisis:

Dunzo's financial struggles have been exacerbated by the ongoing funding crisis that has impacted the startup ecosystem. Securing adequate funding is crucial for the growth and sustainability of businesses, especially in the highly competitive quick-commerce sector. The company has faced difficulties in attracting new investments, leading to difficult decisions such as layoffs and delayed salary payments.

Impact on Employees:

The delay in salary payments undoubtedly places a significant burden on Dunzo's employees. It can result in financial stress and uncertainty for those who rely on their salaries to meet their daily needs and financial obligations. While CEO Kabeer Biswas has assured employees that September salaries will be paid in the first week of October, the deferred payments for June and July add to the financial challenges faced by the workforce.

Office Relocation to Cut Expenses:

In an effort to mitigate its financial woes, Dunzo is also planning to vacate its current office located on Bengaluru's Wind Tunnel Road. This decision aims to reduce operational expenses and allocate resources more efficiently. Office relocation is a common cost-cutting measure adopted by companies facing financial constraints.

Vendor Pressure and Ongoing Challenges:

Apart from the internal workforce, Dunzo is also facing pressure from vendors who have yet to receive payments. Ensuring timely payments to vendors is crucial for maintaining strong business relationships and securing essential supplies. These challenges highlight the complex web of financial difficulties the company is navigating.


Dunzo's decision to defer salary payments is a reflection of the challenging times it currently faces. The funding crisis, layoffs, and pressure from vendors underscore the magnitude of the financial hurdles the quick-commerce startup must overcome. As the company works to secure its financial footing, its employees and partners eagerly await the resolution of these challenges and a return to stability in the highly competitive quick-commerce market.

Source: The Economic Times



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