Dunzo Digital Pvt Ltd, a quick commerce startup backed by Reliance and Google, has reportedly postponed pending employee salary payments for the months of June and July to October. This decision comes as the company is actively seeking to raise additional capital through fundraising efforts.
The startup, which has been facing financial constraints, has been working to secure funding in the range of $75 million to $150 million from both existing and new investors. This move is seen as an attempt to address its cash flow challenges and continue its operations.
The company informed its employees on August 30 that it needs to extend the timeline for pending salary payments by another month, moving them to October. However, it assured employees that the salaries for August will be paid as usual in September. Additionally, it was noted that the salaries for June and July, which had not been paid to around 15% of employees, would also be paid in October. The startup has promised to pay these pending salaries with an interest rate of 12%.
Dunzo had initially set a target to pay the pending salaries for June, July, and August by September 4. The delay in salary payments is reportedly linked to the company’s ongoing efforts to secure the necessary funding to support its operations and growth plans.
In an email to employees, the company reportedly mentioned that it has made progress in its fundraising endeavors and expects to close the funding round by September. This indicates that Dunzo is actively working towards addressing its financial challenges and ensuring the stability of its operations.
The delay in salary payments reflects the complex financial situation that some startups may face as they navigate the competitive and dynamic landscape of the tech industry.