Image Source : HTTPS://WWW.FACEBOOK.COM/DUNZOIT Dunzo to lay off 30% of staff amidst a $75 million funding round
Dunzo layoff: Dunzo, a well-known platform for grocery delivery services, recently announced that it will reduce its workforce by 30%, which would result in the loss of almost 300 jobs. The company took this decision while it has raised a total of $75 million from investors, including Google and Reliance Industries.
During a town hall meeting on April 5, Dunzo’s founder and CEO, Kabeer Biswas, notified its staff of the job losses and stated that it was aiming to change its business plan to become profitable before the IPO.
Reportedly, the firm will operate just those dark stores that can be successful or are already there under the new business model. It will also work in partnership with supermarkets and other retailers.
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Furthermore, Biswas informed the audience at the town hall that this decision was necessary for the company to reach profitability in the following 18 months. Prior to its anticipated initial public offering (IPO) in 2025, the action is meant to assist the company in generating a profit.
The decision was taken while keeping in mind that the company is currently facing increased competition in India’s e-commerce business. This is due to the intensified efforts to ensure that consumers may receive their purchases in 15 minutes or less due to the increased demand for home items to be delivered super-quickly.
Earlier this year, in January, Dunzo had to fire 60 to 80 employees, or around 3% of the whole staff. The corporation had previously closed down several of its dark storefronts as a cost-saving tactic before making this decision.
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The delivery company is still in contact with potential investors like the Abu Dhabi Investment Authority (ADIA), but the funding may not materialize until the company has stabilized and specific criteria have been satisfied.
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