Dunzo, a fast commerce company, is waiting for new funding to improve its financial situation. In the meantime, it has partnered with payroll financing firm OneTap to pay its employees’ August salaries.
Employees were instructed to download a specific app and complete the necessary KYC procedures so that their salaries could be transferred on September 15th.
The Indian fast-food delivery service had been making headlines for all the wrong reasons. It has been failing to pay its employees on time. Despite a major funding crisis, the quick commerce startup informed employees that they would have to wait until October for their June and July salaries, and that they would be paid with 12% interest. It had previously promised to clear all outstanding debts by September 4, a deadline it had extended from a previous promised date in July. The salary payment was delayed even further because the platform failed to raise the necessary funds.
It informed its employees in the first week of September 2023 that their salaries would be paid in installments. It had informed the employees in an e-mail that it would take a few days to transfer the salaries to everyone. However, they were assured at the time that their August salary would be paid the following week.
It now appears that it has enlisted the assistance of OneTap, an RBI-registered non-banking financing corporation (NBFC) run by Capital Trade Links.