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Quick commerce firms are likely to face hurdles such as a low total addressable market (TAM), tapering growth in monthly transacting users (MTUs), and increased competition from e-commerce players
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Biswas heading Flipkart Minutes is to give the Walmart-owned company an edge over other quick commerce majors as he has cut his professional teeth in the sector for over a decade, even before rapid delivery emerged as a hot sector only a few months ago.
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If talks go through, Biswas heading Flipkart Minutes is likely to give the Walmart-owned company an edge over other quick commerce majors as he has cut his professional teeth in the sector for over a decade, even before rapid delivery emerged as a hot sector only a few months ago.
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Dunzo was in talks with BigBasket, Swiggy among others for a strategic investment earlier. While it pioneered the hyperlocal commerce space, excessive cash burn and a competitive market took a toll.
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Siddharth Talwar represented Lightbox on Dunzo’s board but decided to move on from the VC fund in August 2023. Lightbox is not keen on nominating another person on the company’s board, Moneycontrol has learnt
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The woman shared a photograph of her medicine along with the Swiggy bill, thanking the delivery agent for his help in an X post.
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This comes at a time when Saleem Asaria has also stepped back from daily operations, per sources who added that Raghav Rungta has already left Lightrock. Ashish Garg left in September 2022 to join a startup.
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This is despite the company having tied up with OneTap, a revenue financing firm, earlier this year.
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Google, also one of Dunzo’s largest investors, charges at least Rs 1,600 per user per month for its suite of offerings under the enterprise plan but Zoho charges only Rs 489 for the same arrangement.
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A company is typically considered a 'going concern' if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks. This is not, however, the case with Dunzo.
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Dunzo marketed its services during the Indian Premier League which resulted in higher expenses but translated to a marginal increase in revenues.
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In fact, in one of the townhall meetings, Mukund Jha, co-founder and chief technology officer of Dunzo, admitted that not hiring a chief financial officer earlier was a big mistake.
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The development comes after Dunzo raised USD 75 million in April, and fired about 300 employees in the first half of this year as part of cost-cutting measures.
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The fresh delay, this time by around four months, comes even as Dunzo is lining up funds. In the past the company had delayed payouts only by a few weeks.
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Jha, who joined the hyperlocal delivery player in 2015, played a key role in communicating with employees and letting them know about delay in salaries and layoffs.
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Sources at the company highlighted that Suri has tried exiting the firm earlier, but had stayed back after discussions with CEO Biswas. Suri has no stake in Dunzo and took home just a salary with some ESOPs, like several other employees.
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While the valuation is still undecided, key investors like Lightrock and Lightbox are participating in the round.
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The move to vacate its headquarters on Wind Tunnel road in Bengaluru comes at a time when Dunzo has been struggling to manage its cash flow situation
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Dunzo said employees can expect to receive salaries by September 14 or September 15 at the latest.
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Dunzo had promised that current employees would receive their August salaries on September 4 but has now said it will be paying salaries in batches.
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The startup was earlier scheduled to make payments on September 4, which was already an extension from its July 20 deadline initially.
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Dunzo’s struggle to raise funds comes in the same week as CaratLane’s founder made a successful exit
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Dunzo is reportedly also simultaneously seeking new capital from existing and new investors, as partners reduce per delivery charges, affecting the company’s revenues
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For instance, an employee who was earning Rs 1 lakh a month but was paid only Rs 75,000, because of Dunzo’s decision, in June will now receive an interest of 12 percent per annum on the remaining Rs 25,000.
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From around March this year, Dunzo has received a legal notice from at least seven entities which include Google India, Nilenso, Clover Ventures, Facebook, Cupshup, Koo and Glance. In all, these total to about Rs 11.4 crore, nearly double of Rs 5-6 crore that was estimated earlier.
