Several prominent companies in the start-up world are facing tough times. After Byju's and ZestMoney, now Dunzo, a hyperlocal delivery services start-up, is in the spotlight for failing to pay November salaries to its employees, as reported by Moneycontrol.
This isn't the first instance of the company facing challenges in timely salary payments. Currently, salaries are already being paid with a one-month delay. According to various media reports, the company had initially planned to clear all dues by September.
Such a condition of the company has happened when it has tied up with revenue finance company OneTap.
A few months back, the company emailed its employees explaining that the delay in salary payments was a strategic move to streamline cash flow and fortify the business for the future. In a town hall meeting, Dunzo's founder and CEO, Kabir Biswas, disclosed that the delay specifically impacted June salaries exceeding Rs 75,000, citing cash flow challenges.
"We've received assurance from our investor that the anticipated funds will be transferred to us early next week. As soon as we receive it, we plan to release the November salaries. With this injection of funds, we anticipate being able to cover salaries for the next few months until we conclude the equity round in January," the company informed its employees earlier this week as reported by the news platform.
At present, Dunzo is set to settle outstanding payments to its current employees. However, there have been several delays, and the employees have been notified that they will only receive their payments in the coming year.
Struggling commerce start-up Dunzo has recently moved all of its employees from Google to Zoho Workspace in a bid to cut costs by at least a third.