Dunzo, a hyperlocal supply startup in India, is suspending worker salaries for a month and intends to settle remaining dues from the earlier month additionally in September because the Google and Reliance Retail-backed startup hunts for brand new funding.
The Bengaluru-headquartered startup advised staff Wednesday that it will be unable to pay the rest of their salaries for the month of June till early September and is delaying the August wage for all staff to September 4 as effectively.
The delay in wage comes because the startup focuses on “streamlining our money stream so we are able to construct a extra sustainable enterprise for the longer term,” it wrote to staff in an e-mail.
“We’d like your help as we work by means of this,” the corporate wrote. A Dunzo spokesperson mentioned the corporate didn’t instantly have a remark.
The eight-year-old startup, which secured some funding only a few months in the past, has raised practically $500 million altogether and was final valued at $757 million, in line with market intelligence agency Tracxn.
Dunzo has been trying to increase a big funding spherical for a number of quarters. The corporate was eyeing as a lot as $150 million earlier and will solely safe about $45 million in a latest funding spherical, Indian information outlet Financial Occasions reported. TechCrunch reported in late March that Dunzo was finalizing a $50 million spherical.
It’s now trying to increase one other $20 million to $25 million, in line with an individual accustomed to the matter. Financial Occasions mentioned earlier this week that the startup was in talks with Reliance Retail for added funds as lots of its different current backers had not participated within the latest financing spherical.
Extra to observe.
