Reliance-backed quick commerce start-up, Dunzo, has laid off 30 per cent (about 300 people) of its workforce as it chases profitability, according to sources close to the matter.
The layoffs were announced in a company-wide call, followed by one-on-one discussions with the impacted employees and a company townhall. Along with the lay-offs, Dunzo has also reportedly raised $75 million in funding in a convertible debt round.
Further, Dunzo is also reorganising its business model and will reportedly shut down 50 per cent of its dark stores. The company will explore delivery partnerships with supermarkets and other merchants.
This is the second round of workforce rationalisation at Dunzo this year. In January, too, Dunzo had laid off about 3 per cent of its workforce as part of its cost-cutting efforts. The company was also reported to have closed 20-30 per cent of its dark stores in Delhi-NCR and Hyderabad in late December 2022.
Also read: Dunzo users cumulatively tipped ₹3 crore to delivery partners in 2022
Quick grocery delivery or quick commerce is generally defined as home delivery of groceries in 10-30 minutes. In December, Flipkart scaled down its quick commerce offering Flipkart Quick from a few cities, as it figures out a sustainable business model. The e-commerce giant has now shifted focus to its next-day grocery delivery offering Flipkart Supermart.