Dalvir Suri, Co-founder of Dunzo, the on-demand delivery startup, has stepped down amid financial challenges and a comprehensive company-wide reorganisation, as confirmed by CEO Kabeer Biswas.
Biswas, also a co-founder, acknowledged Suri’s pivotal role in establishing various business lines at Dunzo and mentioned Suri’s intention to take a break after dedicating over six years to building the company. Biswas stated that Suri plans to explore new ventures.
In addition to Suri’s departure, Dunzo is undergoing organisation-wide restructuring starting this quarter, Biswas revealed. He expressed confidence in the capable leadership within Dunzo Merchant Services (the company’s B2B arm) to seamlessly continue operations.
This leadership change occurred during a period of financial strain for Dunzo, marked by a working capital crunch leading to salary delays for a substantial number of employees. The Bengaluru-based startup, backed by entities such as Reliance Industries and Google LLC, is struggling to secure funding to sustain its future operations.
In response to financial challenges, Dunzo has initiated a workforce reduction, letting go of approximately 380 employees in an effort to streamline operations and enhance profitability.
Despite various strategic shifts, the startup reported a modest revenue of Rs 54.3 crore in FY22, doubling from the previous year. However, it incurred a loss of Rs 464 crore, almost doubling from Rs 229 crore, contributing to an accumulated loss of Rs 1,230 crore. As of now, the company has yet to file earnings for FY23.
