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Dunzo Co-Founder to Step Down Amid Cash Crunch, Organizational Restructuring Ahead

Dunzo founders (from left) Ankur Aggarwal, Mukund Jha, Kabeer Biswas and Dalvir Suri. Its co-founder, Dalvir Suri, is set to resign from the firm (MINT)

Amidst a challenging financial landscape for the hyper-local delivery platform, Dunzo, co-founder Dalvir Suri is set to step down from his position. Additionally, the Reliance Industries-backed startup is gearing up for an organization-wide restructuring, slated to begin this quarter.

While the exact date of Dalvir Suri’s departure remains unspecified, there has been no official announcement regarding his successor within the company.

This significant change comes at a critical juncture for the local delivery platform, which is grappling with a pressing need for funds and actively implementing measures to curtail expenses. Over the past few months, Dunzo has faced difficulties in securing deals, resulting in at least three rounds of layoffs. Beyond reducing its workforce, the company has also deferred or decreased salaries for some employees and scaled back operations at 50% of its dark stores.

Details about the scope and specifics of the firm’s restructuring are currently limited. Dalvir Suri, who joined Dunzo in May 2015, approximately a year after its inception, had been leading the business-to-business unit, Dunzo Merchant Services (DMS).

“Dalvir has been instrumental in building out every new line of business at Dunzo … and the DMS business has very capable leadership that’s picking up directly after him,” stated CEO and co-founder Kabeer Biswas. Ankur Agarwal and Mukund Jha are the other co-founders of the company.

In an effort to alleviate its financial pressures, Dunzo is in advanced negotiations to secure a funding round in the range of $25 million to $30 million. This round is expected to increase Reliance Retail’s existing 25.8% stake in the company, as reported by Reuters citing Moneycontrol. However, challenges persist as Dunzo grapples with delayed salary payments to its employees, underscoring the urgency of its financial predicament.