Indian online delivery platform, Dunzo, has reportedly laid off 30% of its workforce or nearly 300 employees in a cost-cutting exercise aimed at streamlining the start-up’s operations. The move comes after the start-up raised $75m via convertible notes. However, Dunzo declined to comment on both the layoffs and fundraising.
In January, Dunzo had fired 3% of its workforce or 80 employees and stated that it was continuously looking at its team structures and network design to build efficiency into teams. “As we scale from 10 to 100, we are continuously learning how to redefine business processes at scale. Any decision that impacts people is tough, and always our last option,” said Kabeer Biswas, CEO & co-founder, Dunzo.
Like many other start-ups, Dunzo is focusing on profitability, and to achieve that goal, it is cutting costs, which unfortunately means reducing its workforce. Last week, SoftBank-backed Unacademy also said that it would fire 380 or 12% of its workforce as part of its latest cost-cutting measures. The global unrest and funding winter have severely impacted start-ups across various sectors, leading many to announce hiring freezes.
As per Tracxn, Dunzo, which was founded in 2014, has raised $405m so far and employs over 1,800 people. In FY22, the start-up reported a revenue of Rs 67.7 crore, up from Rs 29.4 crore in the previous year, but it posted a loss of Rs 464 crore. Dunzo competes with Swiggy, Zepto, and Blinkit, among others, in India’s online food delivery market. As per Statista, revenue in the online food delivery market in India is projected to reach $34.68 billion in 2023, and the grocery delivery segment is likely to see a revenue growth of 36.1% in 2024.