Bengaluru: Indian online delivery platform Dunzo has secured funding of $75 million through convertible notes and is laying off about 30% of its staff as it plans a revamp of its business model, the Economic Times reported on Thursday.
The layoffs, which will affect over 300 workers, is part of a rejig announced by founder and Chief Executive Officer Kabeer Biswas at a town hall on Wednesday, the newspaper reported, citing several people aware of the matter.
Key backers Reliance Retail and Alphabet Inc have added about $50 million of the funding, with other existing investors putting in the rest, the newspaper reported.
Dunzo, Google and Reliance Retail did not immediately respond to a Reuters’ request for a comment.
Under the new business model, the company will cut about 50% of its dark stores and run only those that can be profitable or are nearing that threshold, ET reported, adding that it will partner with supermarkets and other merchants.
Biswas told employees at the town hall the firm had to take this call to ensure it can hit profitability in the next 18 months, the report added.
The move comes as growing demand for superfast dispatch of household goods has led players to intensify their battle to ensure users are able to get their orders in 15 minutes or less.
The delivery firm continues to hold talks with other investors such as Abu Dhabi Investment Authority (ADIA) but that capital may only come after the business has stabilised and certain metrics are met, ET reported, citing people in the know.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Varun H K)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.
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