Indian on-line supply platform Dunzo has secured funding of $75 million (roughly Rs. 614 crores) by convertible notes and is shedding about 30 p.c of its workers because it plans a revamp of its enterprise mannequin, the Economic Times reported on Thursday.
The layoffs, which is able to have an effect on over 300 employees, are half of a rejig introduced by founder and Chief Executive Officer Kabeer Biswas at a city corridor on Wednesday, the newspaper reported, citing a number of folks conscious of the matter.
Key backers Reliance Retail and Alphabet Inc have added about $50 million (roughly Rs. 409 crores) of the funding, with different present traders placing in the remainder, the newspaper reported.
Dunzo, Google and Reliance Retail didn’t instantly reply to a Reuters’ request for a remark.
Under the brand new enterprise mannequin, the corporate will reduce about 50 p.c of its darkish shops and run solely these that may be worthwhile or are nearing that threshold, ET reported, including that it’ll companion with supermarkets and different retailers.
Biswas advised workers on the city corridor the agency needed to take this name to make sure it could hit profitability in the subsequent 18 months, the report added.
The transfer comes as rising demand for superfast dispatch of family items has led gamers to accentuate their battle in making certain customers are in a position to get their orders in quarter-hour or much less.
The supply agency continues to carry talks with different traders equivalent to Abu Dhabi Investment Authority (ADIA) however that capital could solely come after the enterprise has stabilised and sure metrics are met, ET reported, citing folks in the know.
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