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Dunzo Shakes Up Business Model with $75M Funding and Layoffs: What's Next

Can Dunzo's layoffs and new model sustain its position in India's online delivery market amid pandemic demand?

6 April 2023

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Abhisek Dash

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  • Dunzo raised $75 million in funding led by Reliance Retail and Alphabet Inc.

  • To ensure sustainability, Dunzo plans to lay off 30% of its workforce, cut 50% of dark stores and form partnerships.

  • Dunzo aims to position itself as a major player in the Indian online delivery market despite the pandemic-driven surge in demand.

Dunzo, the Indian online delivery giant, has raised $75 million in funding through convertible notes while also announcing plans to lay off 30% of its workforce. According to the Economic Times, the revamp was announced by founder and CEO Kabeer Biswas at a town hall meeting on Wednesday.


The layoffs, which are set to affect over 300 employees, are part of a strategy to reshape the company's business model. The move comes as Dunzo aims to streamline its operations and ensure long-term sustainability.


The funding round was led by key backers Reliance Retail and Alphabet Inc, with other existing investors contributing the remainder. However, neither Dunzo, Google nor Reliance Retail responded immediately to a request for comment from Reuters.

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To streamline its operations and ensure long-term sustainability, the company will cut about 50% of its dark stores and operate only those that can be profitable or are near profitability. Dunzo also plans to form partnerships with supermarkets and other merchants as reported by the Economic Times.


The online delivery market in India has witnessed a surge in demand, particularly during the COVID-19 pandemic, as more people opt for home delivery to avoid crowded places. Dunzo has been one of the leading players in this market since its inception in 2015, offering customers access to groceries, medicines, and other essential items within minutes through its platform.


Despite the news of layoffs, the new funding and business model could potentially position Dunzo as a major player in the Indian online delivery market. As the market continues to evolve, it will be interesting to see how Dunzo adapts to stay ahead of the competition.

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