This time around, the Bengaluru-based startup has fired 30% of its employees, in a move that is likely to impact around 300 jobs.
Interestingly, the fresh layoffs at the Reliance Retail-backed quick commerce startup came as it secured funding of $75 million through convertible notes, ET reported on Thursday, citing people aware of the matter.
According to the report, $50 million of the funding infusion is from Google and Reliance Retail, while the rest is from other existing investors.
Dunzo founder and CEO Kabeer Biswas told employees about the job cuts during a town hall meeting on April 5, stating that the company had to take the hard decision to ensure it would achieve profitability in the next 18 months.
Besides layoffs, Dunzo is also likely to cut about 50% of its dark stores and run only those that can be profitable or are nearing that threshold. Wherever it shuts dark stores, Dunzo will partner with supermarkets and other merchants.
Discover the stories of your interest
Several other startups, including Swiggy Instamart, Zepto, Zomato’s Blinkit and BigBasket’s BB Now have announced layoffs or operational changes amid the funding crunch and stiff competition.