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Google-backed Dunzo fires 3% of workforce | Mint – Mint

NEW DELHI: Joining the long list of Indian startups that have been trimming their headcount to cut costs, Google-backed delivery platform Dunzo has laid off 3% of its workforce citing restructuring.

“As we scale from 10 to 100, we are learning how to redefine business processes at scale. Any decision that impacts people is tough and always our last option. Last week, we had to part ways with 3% of our team strength,” said Kabeer Biswas, co-founder and chief executive officer (CEO), Dunzo.

According to information available on LinkedIn, Dunzo has an employee base of 3,000, which means that the startup has shown the door to around 90 employees. The company did not disclose the number of employees laid off.

“Whatever the numbers, these are people who chose to build their careers with Dunzo, and it is sad to have talented colleagues leave us. We are extending the best support possible to help them during this transition,” Biswas said.

Dunzo had last raised $240 million in January 2022 in a funding round led by Reliance Retail Ventures Ltd., which also saw other investors participate, including Lightbox, Lightrock, at a post-money “conservative” valuation of $800 million. It was looking to raise another $250 million to $300 million to help with its expansion plans and fund its quick commerce business.

In FY22, the company’s loss more than doubled to 464 crore from 229 crore in the previous fiscal. Operating revenue has risen to 54.3 crore from 25.1 crore in FY21.

Dunzo had initially planned for a public listing in 2023, but is now allowing for some more time for its quick commerce business to mature before going public. The quick commerce category is getting built over the next two or three years, Biswas had said in an interview last year.

Over the past several months, as many as 17,000 people have lost their jobs as Indian startups trim their workforce in a push to become profitable.

Besides Dunzo, another Google-backed company that has announced massive layoffs is ShareChat’s parent firm Mohalla Tech Pvt. Ltd, who fired around 20% of its employees citing “external macro factors”.

Cloud kitchen brand Rebel Foods, which operates brands such as Faasos, Behrouz Biryani and Oven Story, as well as edtech unicorn Lead School have also recently sacked employees.

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