Bengaluru-based quick grocery delivery service start-up Dunzo is facing delays in salary disbursements due to fundraising challenges and has now opted to pay the salaries in batches.

The company had earlier promised the employees that their salaries would be disbursed starting on September 4. However, according to media reports, it has now sent an email to its employees stating that the payments will made in batches and might take an additional day or two to complete.

According to media reports, the email further stated, “Team members whose salary has been processed will receive an email confirmation. Rest assured, you will receive your August 2023 salary within this week without fail." 

The company had previously postponed salaries to the first week of October due to certain procedural requirements. It had also committed to an interest payment of 12 per cent per annum on the salary component withheld since June.

According to reports, Dunzo was in talks with its existing investors Lightbox and Lightrock to raise $80 million to $100 million, but it is currently facing fundraising challenges. 

Dunzo is dealing with severe financial difficulties, marked by the receipt of legal notices from more than seven companies and vendors, who are collectively seeking over Rs 11 crore in claims. In an effort to address these financial pressures, the company has implemented three rounds of layoffs within the past year, resulting in the reduction of more than 500 jobs.

Dunzo was founded in 2015 by Kabeer Biswas and has managed to secure approximately $500 million in funding from investors such as Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others.  

Reliance holds the largest 25.8 per cent ownership in the company, followed by Google, which holds around 19 per cent ownership.