India-based delivery firm Dunzo has reportedly laid off 30% of its workforce, according to The Economic Times, affecting nearly 300 people shortly after it raised $75 million through convertible notes that saw participation from Reliance Retail Ventures, and some existing investors.
CEO and Dunzo Founder, Kabeer Biswas, had informed employees of the job cut during a town hall meeting on April 5, stating that it was looking to pivot its business strategy to achieve profitability ahead of its initial public offering (IPO) planned for 2025, the report added.
Further, Dunzo is also reorganising its business model and will reportedly shut down 50% of its dark stores. These job cuts follow a 3% cut to its workforce in January. It also shut down a few of its dark stores in Delhi-NCR and other regions in November 2022, amid cost-cutting measures.
Founded in 2015, Dunzo offers a range of services from quick grocery delivery to pet supplies and had enjoyed rapid growth in recent years. The firm has also been exploring new areas such as bike taxi services and has raised over $300 million to date.
However, the quick-grocery delivery provider faces increasing competition in India's highly competitive e-commerce market. While the pandemic has driven demand for online delivery services, it has also led to challenges such as supply chain disruptions and increased costs.