Dunzo shifts business model, lays off nearly 300 employees

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Mumbai, 6th April 2023: Indian hyperlocal delivery start-up, Dunzo, has laid off nearly 300 employees and secured $75 million in funding ahead of its planned IPO in 2025. The company cited a shift in its business model as the reason for the layoffs. Dunzo is moving from a marketplace model to a full-stack model where it will own and operate its own delivery fleet. This move will allow the company to have more control over the delivery experience, increase efficiency, and reduce costs.



According to the company’s CEO, Kabeer Biswas, the layoffs were a “very tough decision,” but necessary to ensure the company’s long-term sustainability. The company will provide affected employees with a severance package that includes three months’ salary, health insurance for six months, and assistance with job placements.


The funding round was led by existing investor, Lightbox Ventures, and included participation from Google, Evolvence India Fund, and Alteria Capital. With this new funding, Dunzo’s valuation is estimated to be around $200-300 million.


Dunzo was founded in 2015 and has since expanded to 13 cities in India. The company offers delivery services for a wide range of products, including groceries, medicines, and pet supplies. The company has also launched Dunzo Daily, a subscription service that delivers milk, bread, and other daily essentials to customers’ doorsteps.


Dunzo’s IPO plans come as India’s e-commerce market is booming. The COVID-19 pandemic has accelerated the shift to online shopping and delivery services, making companies like Dunzo even more relevant. The company’s move to a full-stack model and its focus on customer experience and efficiency should position it well for long-term success.