In a dramatic move to address severe financial challenges, hyperlocal delivery platform Dunzo has announced a major reduction in its workforce, cutting approximately 150 employees—75% of its total staff. The company, once valued at $775 million, is now struggling with significant financial difficulties, including overdue payments to employees and vendors.
On August 31, 2024, Dunzo executed the layoffs as part of a broader effort to reduce costs and stabilize its operations. The company is now operating with a reduced team of just 50 employees, who will focus primarily on core supply and marketplace functions.
The decision to lay off such a large portion of its workforce comes as Dunzo grapples with mounting pressure to meet its financial obligations. The affected employees were notified via email, with Dunzo assuring them that pending salaries, severance, leave encashment, and other dues would be settled once the company secures the necessary funds.
At its peak, Dunzo was a rapidly growing concierge service with a valuation of $775 million. However, recent financial setbacks have posed serious challenges. In May 2024, the company was on the verge of closing a $22-25 million funding round, including equity and debt from new and existing investors. Unfortunately, the deal fell through, exacerbating the company’s financial strain.
By mid-July 2024, Dunzo had informed its employees that it was in the final stages of securing funds and anticipated settling outstanding dues within 10-15 days. Despite these assurances, the promised funding remains unsecured, leaving the company’s future in uncertainty.