In a significant development for the on-demand delivery platform Dunzo, co-founder Dalvir Suri is set to depart from the company, while the Reliance Industries-backed startup prepares for an extensive restructuring. The announcement comes amid Dunzo’s ongoing challenges in securing funding and its efforts to streamline operations through cost-cutting measures, including staff reductions and salary adjustments.
BENGALURU, October 2, 2023 – Dunzo, the popular on-demand delivery platform backed by Reliance Industries, has disclosed that co-founder Dalvir Suri will be stepping down from his role, marking a pivotal moment in the company’s journey. In addition to Suri’s departure, Dunzo has unveiled plans for a comprehensive restructuring initiative, aimed at addressing its recent financial difficulties and ensuring long-term sustainability.
Over the past few months, Dunzo has encountered difficulties in securing funding, prompting the company to take several cost-cutting measures to navigate these challenges. These measures have included multiple rounds of layoffs, deferred or reduced salaries for certain employees, and a 50% reduction in its network of dark stores, which are used for order fulfillment. The exact details of the restructuring plan have not been divulged in the company’s initial statement.
However, Dunzo has promised to provide its employees with more information regarding the restructuring later this week, according to a report by financial news website Moneycontrol. Despite requests for comment, Dunzo has not yet responded to inquiries from Reuters regarding this announcement.
Dalvir Suri, who joined the Bengaluru-based startup in May 2015, played a pivotal role in its growth, particularly as the leader of the Dunzo Merchant Services (DMS) business unit. CEO and co-founder Kabeer Biswas expressed gratitude for Suri’s contributions, stating, “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.”
The departure date for Dalvir Suri remains undisclosed, and Dunzo has not yet announced a replacement for his role. The company’s other co-founders, Ankur Agarwal and Mukund Jha, continue to play essential roles within the organization.
Despite the recent challenges, Dunzo is reportedly in advanced negotiations to secure a funding round worth between $25 million and $30 million. This investment round is expected to increase Reliance Retail’s stake in Dunzo, which currently stands at 25.8%. The potential funding would offer a lifeline to Dunzo, providing the capital needed to stabilize its operations and continue its expansion efforts.
In summary, Dunzo’s co-founder Dalvir Suri’s departure and the subsequent organizational restructuring represent a significant development for the Reliance-backed delivery firm. As the company navigates its financial challenges, the forthcoming funding round and strategic changes will be closely watched by industry observers to determine the future trajectory of this prominent player in the on-demand delivery market.
