The Reliance Retail-backed firm had promised to pay salaries for the month of August on September 4. On August 31, the firm informed its employees that pending salaries from the months of June and July, which were also slated to be paid on September 4, would be delayed further, without giving an exact date.
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“Due to certain procedural requirements, we have to do this batch wise. It may take an additional day or two to facilitate this transfer for everyone… Rest assured you will receive your August 2023 salary within this week without fail. This is our top priority and we are expediting the process as much as we can,” the internal communication sent to employees today said.
Dunzo has been struggling to close essential new financing as a difference in the scope of valuation between its investors has emerged as a roadblock, ET reported on August 22. Over the last eight months, the company has fired close to 400 employees.
The Bengaluru-based firm had first delayed salary components above Rs 75,000 for the month of June, which were to be paid in July. It consequently delayed salaries for the month of July as well, assigning September 4 as the date of payment.
Dunzo is also facing legal notices from Google India, Facebook India Online Services, Koo, Glance and others over pending vendor payments. Reports pegged its outstanding vendor debt at about Rs 11.4 crore.
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ET reported on August 22 that Dunzo’s largest investor, Reliance Retail, was averse to the idea of slashing the valuation of the startup by nearly 50% in a fresh funding deal being stitched together by a set of existing investors. The now cash-strapped startup was last valued at close to $800 million, which is when Reliance invested $200 million in it to pick up a 26% stake.