In the midst of challenging times, the quick-grocery delivery provider Dunzo is facing another significant shakeup in its leadership. Mukund Jha, one of the co-founders of Dunzo, is reportedly preparing to exit the company. This development follows closely on the heels of another co-founder, Dalvir Suri, announcing his decision to step down. The primary reason behind these departures is the severe cash crunch that Dunzo finds itself grappling with, leading to delayed salaries and potential layoffs.
Mukund Jha formally stepped down from Dunzo’s board on September 1, a move that has garnered attention within the industry. While the departure of a co-founder is a significant event for any company, Dunzo’s official response to this development is somewhat ambiguous. A Dunzo spokesperson neither confirmed nor denied the news, stating that “Mukund remains an integral part of Dunzo’s leadership team.”
The spokesperson went on to elaborate, saying, “While we are restructuring the organization with new leaders driving key mandates, Mukund will continue to be an important part of the strategic leadership team guiding and directing Dunzo’s future roadmap.”
A Series of Exits
Mukund Jha’s impending exit follows closely behind the departure of co-founder Dalvir Suri. Suri played a pivotal role in Dunzo’s early days and was instrumental in shaping the company’s trajectory. According to Dunzo CEO Biswas, “He has been the key zero to one person from the founding team that just gets things Dun. He has been meaning to take a break for some time now – and with 6+ years spent building Dunzo, he plans to move forward to pursuing new journeys.”
In addition to co-founder exits, Dunzo has also witnessed departures from its board members, including Vaidhehi Ravindran from Lightrock and Rajendra Kamath and Ashwin Khasgiwala from Reliance Retail.
Restructuring Amid Cash Crunch
Dunzo is undergoing significant organization-wide changes in response to its current financial challenges. The company is reportedly in the process of raising $35 million in funding from existing backers like Reliance Industries and Google, as well as new investors. However, these efforts have not shielded Dunzo from the need to make tough decisions.
Reports indicate that Dunzo is in the process of laying off at least “150-200” more employees, further reducing its workforce by approximately 30-40 percent. The company has assured affected employees that they will receive their full and final settlements in January.
Salaries Delayed, Cost-Cutting Measures
Earlier, Dunzo had faced criticism when it delayed the salaries of its employees for the months of June and July. The company attributed this decision to the ongoing fund crunch. To mitigate its financial strain, Dunzo is also considering vacating its office in Bengaluru as part of cost-cutting measures.
In these challenging times, Dunzo is navigating a path towards financial stability and sustainability. The departure of co-founders and board members underscores the company’s commitment to weathering the storm and emerging stronger on the other side.
As the situation unfolds, Dunzo continues to adapt to its evolving circumstances, aiming to secure its position in the ever-competitive world of quick-grocery delivery.