Online delivery platform Dunzo has secured $75 million through convertible notes. Meanwhile, facing heavy losses, the company has also laid off about 30% of its staff in another round of job cuts.
Online delivery platform Dunzo has secured $75 million in funding 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.
As per Business Today, the current round of layoffs has impacted engineering roles at the company. Dunzo founder and CEO Kabeer Biswas announced that the layoff which will affect over 300 workers, is part of a rejig.
According to Economic Times, 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 that, 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. Dunzo is also looking to partner with supermarkets and other merchants.
Dunzo had laid off 3% of its staff in January as a cost-cutting measure. In FY2022, the company faced losses of Rs 464 crore which was twice the losses faced in the year before that.