Grocery delivery platform Dunzo has decided to defer less than 50 percent of the salary of its employees for the month of June, CNBC-TV18 has learnt from sources close to the company.
The development comes after the quick commerce platform cut its workforce by 30 percent, meaning close to 300 employees were laid off in April in its second round of job cuts. Dunzo had also secured funding worth $75 million and both moves were targeted at the delivery platform turning profitable before its initial public offering (IPO) in 2025.
While reports suggest that the decision was primarily due the company facing issues managing its cashflows, sources close to the company told CNBC-TV18 said, the company was not struggling financially and the move has been made due to certain shift in priorities within the company.
Sources also denied reports on layoffs happening soon, saying no such talks are happening within the company. An Economic Times report had suggested that the quick commerce may finalise its plans to terminate more jobs.
Bengaluru-headquartered Dunzo reported a net loss of Rs 464 crore in FY22. This showcase a twofold spike from reporting a net loss of Rs 229.1 crore in FY21. According to company’s annual financial reports the rise in operational cost led to the spike in loss.
Dunzo lost Rs 230 on each Dunzo daily order during the first half of 2022 that is from January to June. EBITDA loss in June was Rs 176 crore. The company is yet to disclose its financials for FY23.
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