Dunzo delays paying salaries further as company faces severe cash crunch
Dunzo has further delayed paying August salaries to a number of employees, after having earlier promised to clear them by the end of this week. Founder and chief executive Kabeer Biswas told employees that the pending August salaries would be paid next Tuesday or Wednesday, in an unplanned video call with the company staff earlier today.
Biswas said that the firm had received «some funds» that had helped it clear August salaries for some employees, but the payouts were delayed for the rest of the staff due to «procedural requirements», according to people in the know of the matter.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Applied Business AnalyticsVisitIndian School of BusinessISB Digital Marketing and AnalyticsVisitNorthwestern UniversityKellogg Post Graduate Certificate in Digital MarketingVisitIndian School of BusinessISB Digital TransformationVisitHe did not clarify if Dunzo had raised fresh funds, but said he was hopeful of closing fresh funding over the next few weeks.
On Monday, ET reported that the Reliance Retail-backed firm had promised to clear all staff salaries for the month of August, which were supposed to be cleared by September 4, by the end of this week.
Moreover, the firm had said the pending salaries for the months of June and July have been delayed further, without giving a future date of payment. Dunzo has been struggling to finalise crucial funding amid a cash crunch, as a valuation mismatch among stakeholders has become a point of contention between investors, ET reported on August 22.
Over the last eight months, the company has fired close to 400 employees. Dunzo is also facing legal notices from the likes of Google India,
