Dunzo has failed to pay salaries for the month of November to its current employees, revealing the company’s ongoing financial difficulties.
This is despite the company having tied up with OneTap, a revenue financing firm, earlier this year.
“We have got assurance from our investor that expected funds will be wired to us by early next week. We should be able to release the November salaries as soon as we receive it. With this infusion we should be able to manage salaries for the next couple of months till we close out the round of equity in January,” the company told employees earlier this week.
Moneycontrol had earlier reported that Dunzo was lining up $25-30 million in capital to keep operations afloat, with existing investors likely to put in more money.
“As this (the fresh funding) is based on external factors, we would recommend members to plan for a worst-case timeline of Dec 15, 2023. We will continue to put our best efforts to find other alternatives as well. Regret the delay and request your continued support,” the company’s communication added.
Dunzo didn’t immediately respond to Moneycontrol’s queries.
Last month, the company said it is making progress on the funding front.
“Over the last few months, we’ve had positive outcomes on better cash flows and lower burn in our business. We are also in the last leg of closing our funding round and we should have some positive news soon. In the meantime, we appreciate your support and understanding,” Dunzo had said in an earlier message but didn’t provide specifics.
Moneycontrol has seen the messages.
This comes at a time when Dunzo is already due to clear its dues to existing employees, who, after multiple delays, have been informed that they’ll be paid only next year.