Home
Internet
Internet News
Dunzo Secures $75 Million in Funding, Lays Off 30 Percent of Its Staff as Part of Business Revamp: Report

Dunzo Secures $75 Million in Funding, Lays Off 30 Percent of Its Staff as Part of Business Revamp: Report

Key backers Reliance Retail and Alphabet have added about $50 million (roughly Rs. 409 crore) of the funding.

By Reuters | Updated: 6 April 2023 11:05 IST

Dunzo Secures $75 Million in Funding, Lays Off 30 Percent of Its Staff as Part of Business Revamp: Report

Dunzo's new business model will cut about 50 percent of its dark stores

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Dunzo's layoffs will affect over 300 workers
Dunzo will hit profitability in the next 18 months
The delivery firm continues to hold talks with other investors

Indian online delivery platform Dunzo has secured funding of $75 million (roughly Rs. 614 crores) through convertible notes and is laying off about 30 percent of its staff as it plans a revamp of its business model, the Economic Times reported on Thursday.

The layoffs, which will affect over 300 workers, are part of a rejig announced by founder and Chief Executive Officer Kabeer Biswas at a town hall on Wednesday, the newspaper reported, citing several people aware of the matter.

Key backers Reliance Retail and Alphabet Inc have added about $50 million (roughly Rs. 409 crores) of the funding, with other existing investors putting in the rest, the newspaper reported.

Dunzo, Google and Reliance Retail did not immediately respond to a Reuters' request for a comment.

Under the new business model, the company will cut about 50 percent of its dark stores and run only those that can be profitable or are nearing that threshold, ET reported, adding that it will partner with supermarkets and other merchants.

Biswas told employees at the town hall the firm had to take this call to ensure it can hit profitability in the next 18 months, the report added.

The move comes as growing demand for superfast dispatch of household goods has led players to intensify their battle in ensuring users are able to get their orders in 15 minutes or less.

The delivery firm continues to hold talks with other investors such as Abu Dhabi Investment Authority (ADIA) but that capital may only come after the business has stabilised and certain metrics are met, ET reported, citing people in the know.

© Thomson Reuters 2023

Smartphone companies have launched many compelling devices over the first quarter of 2023. What are some of the best phones launched in 2023 you can buy today? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.