Dunzo, the embattled quick commerce startup which has been in the news for all the wrong reasons off late, will now see co-founder Dalvir Suri parting ways. This comes even as the Bengaluru-based quick-commerce platform faces a series of significant challenges that have raised questions about its future. These include delayed salary disbursements, layoffs, and now, the departure of one of its co-founders.
Kabeer Biswas, CEO of Dunzo, confirmed this development. “Dalvir has been instrumental in building out every new line of business at Dunzo. He has been the key zero to one person from the founding team that just gets things Dun. He has been meaning to take a break for sometime now – and with 6+ years spent building Dunzo, he plans to move forward to pursuing new journeys,” Biswas said.
One of the most significant challenges facing Dunzo is its financial situation. The company has faced delays in salary disbursements for its employees, which has understandably caused discontent among its workforce. Recent reports suggest that Dunzo has postponed salary payments to the first week of October. Additionally, the company has undertaken several rounds of layoffs this year, affecting more than 400 employees in three separate batches. With Biswas hinting at organizational changes, further layoffs may not be out of the question.
And if Suri’s exit is not enough, Dunzo also announced its plans for an organization-wide restructuring, set to commence this quarter. Specific details about this restructuring are yet to be revealed. “Dalvir has been instrumental in building out every new line of business at Dunzo… and the DMS business has very capable leadership that’s picking up directly after him,” Biswas added in the official statement. Dunzo’s recent struggles, including delayed salary disbursements, layoffs, and the recent departure of co-founder Dalvir Suri, have inevitably raised questions about the company’s future. It remains to be seen whether Dunzo’s upcoming efforts to navigate its current financial difficulties are successful in shaping the company’s future in the brighter direction.
To address its financial challenges and secure its future, Dunzo has been actively seeking new funding. According to prior media reports, the company is currently in advanced discussions to secure a funding round ranging from $25 million to $30 million. This funding would increase Reliance Retail’s stake in Dunzo to 25.8%, which could alleviate some of its financial woes – something that had forced it to reduce its dark stores by 50%. To date, Dunzo has raised approximately $475 million, making it a prominent player in India’s fast-growing quick-commerce sector.