Dalvir Suri, co-founder of hyper-local delivery platform Dunzo, is stepping down from his position amid a cash crunch faced by the company. This move coincides with an organization-wide restructuring plan that Dunzo, backed by Reliance Industries, is set to undergo in the coming quarter.
The exact date of Dalvir Suri’s departure has not been specified, and there has been no announcement regarding his replacement within the company. This development comes at a time when Dunzo is grappling with financial challenges and striving to implement cost-cutting measures.
Dunzo has been facing difficulties in securing funding and has resorted to several rounds of layoffs as part of its cost-cutting efforts. Additionally, the company deferred or reduced salaries for some employees and scaled back 50% of its dark stores.
While specific details about the restructuring of the company are scarce, Dalvir Suri’s association with Dunzo dates back to May 2015, approximately a year after the company’s founding. He played a pivotal role in establishing various new lines of business at Dunzo, particularly leading the Dunzo Merchant Services (DMS) business unit.
CEO and co-founder Kabeer Biswas acknowledged Dalvir Suri’s contributions, stating that he had been instrumental in the growth of Dunzo’s diverse business ventures, and expressed confidence in the capable leadership of the DMS business unit as it continues after his departure. Ankur Agarwal and Mukund Jha are the other co-founders of the company.
Dunzo is currently in advanced discussions to secure funding in the range of $25 million to $30 million, which would increase Reliance Retail’s stake in the company from its existing 25.8%, according to reports from Reuters, citing Moneycontrol.
In addition to its financial challenges, Dunzo has faced delays in salary payments to its employees. The company’s struggles with funding have led to delays in salary payments, with August salaries being delayed even after promises to clear them by the first week of September. Furthermore, the company has received legal notices from seven partner vendors regarding unpaid dues.