Quick-commerce startup Dunzo has informed its employees through an internal email that it will defer the payment of pending salaries for June and July until February 2024 due to its current financial challenges.
The delayed payments will also include an additional 12 per cent per annum interest based on the employee’s service period. For former employees, their outstanding payments, which cover August and September salaries, will be part of the full and final settlement to be disbursed by February 2024.
Dunzo had initially communicated this delay in August, setting a payout target of the first week of October for those who resigned or were laid off after 1 June, 2023.
The recent payment delay follows the exit of two Dunzo co-founders, Dalvir Suri and Mukund Jha, amid the company’s liquidity struggles. Despite these challenges, Dunzo is reportedly in talks with investors to secure funding in the range of USD 25 million to USD 35 million to sustain its operations. These financial difficulties have led to workforce reductions, salary delays, operational suspensions and business model restructuring for the startup.
Dunzo’s commitment to an interest payment on overdue salaries offers some financial relief for its employees amid ongoing uncertainties.
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