Indian hyperlocal delivery startup Dunzo will defer employee salaries for a month and intends to settle the remainder of the previous month’s arrears in September as the Google and Reliance Retail-backed startup looks for fresh funding.
The Bengaluru-based startup told employees on Wednesday that it will not be able to pay the remainder of June salaries until early September, and is deferring August salaries to September 4 for all employees.
The payroll delay comes as the startup focuses on “simplifying our cash flow so we can build a more sustainable business for the future,” the company wrote in an email to employees.
“We need your support as we resolve this issue,” the company wrote. A Dunzo spokesman said the company had no immediate comment.
The eight-year-old startup, which raised some funding just a few months ago, has now raised nearly $500 million and was last valued at $757 million, according to market intelligence firm Tracxn.
Dunzo has been seeking a large funding round for several quarters. The company had earlier targeted $150 million but was only able to secure about $45 million in its latest funding round, according to Indian news outlet The Economic Times. TechCrunch reported in late March that Dunzo was close to closing a $50 million funding round.
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