Indian on-line supply platform Dunzo has secured funding of $75 million (roughly Rs. 614 crores) by way of convertible notes and is shedding about 30 p.c of its workers because it plans a revamp of its enterprise mannequin, the Financial Instances reported on Thursday.
The layoffs, which is able to have an effect on over 300 employees, are a part of a rejig introduced by founder and Chief Govt 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 current buyers placing in the remaining, the newspaper reported.
Dunzo, Google and Reliance Retail didn’t instantly reply to a Reuters’ request for a remark.
Underneath 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 accomplice with supermarkets and different retailers.
Biswas instructed workers on the city corridor the agency needed to take this name to make sure it may hit profitability within 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 guaranteeing customers are capable of get their orders in quarter-hour or much less.
The supply agency continues to carry talks with different buyers equivalent to Abu Dhabi Funding Authority (ADIA) however that capital might solely come after the enterprise has stabilised and sure metrics are met, ET reported, citing folks within the know.
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