“Dunzo Faces Further Delays in Clearing Former Employee Salaries, Citing Business Challenges”
Delivery startup Dunzo faces further delays in clearing pending salaries for ex-employees, now aiming to credit them by January/February 2024. The company cites the current business situation as the reason behind the extended timeline.
Delivery startup Dunzo has once again deferred the payment of pending salaries for its former employees, notifying them that these dues will now be credited by January or February of the coming year. This decision marks the latest in a series of missed deadlines for salary payments.
In an email sent to ex-staffers, the Bengaluru-based company expressed its commitment to settling all outstanding salaries as soon as possible. However, it also regretfully informed them that due to the prevailing business situation, the revised timeline for clearing pending dues, including salaries for June and July, if any, is set for January-February 2024. The email also mentioned that other pending payments, including August and September salaries for days served, will also be processed within the same timeline as part of their Full and Final settlement.
Furthermore, Dunzo, which enjoys backing from prominent investors like Reliance Retail and Google, has promised a 12% interest on the service period to compensate for the delays in salary disbursements, according to reports.
This situation of delayed salary payments has unfolded over several months, with Dunzo initially withholding a portion of June-July salaries for its former employees. The company had assured these employees that all dues would be cleared by July 20. However, it missed this initial deadline and subsequently set a revised target of September 4, which it also failed to meet. Later, Dunzo pledged to clear the pending salaries in October but, once again, did not fulfill its commitment.
The continued delays in salary payments come at a challenging time for Dunzo, as two of its four co-founders, Dalvir Suri and Mukund Jha, are set to depart the company. This leaves Kabir Biswas and Ankur Agarwal as the remaining co-founders of the cash-strapped startup.
The situation highlights the financial and operational challenges facing Dunzo as it navigates a changing landscape in the delivery industry. It also underscores the importance of timely salary payments and financial stability for both employees and businesses in the startup ecosystem.
Sources By Agencies
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