Mukesh Ambani-Backed Dunzo's Struggles Resume as Co-Founder Quits

The cash-strapped, Mukesh Ambani-backed firm Dunzo has encountered another difficult situation, as co-founder Dalvir Suri resigned on Monday. With his resignation, the company has decided to wind up the subsidiary firm Dunzo Merchant Services (DMS), which was developed by Suri. Company CEO Kabeer Biswas acknowledged this fact in an email sent to all Dunzo employees on Monday, hailing Dalvir”s contribution as he was instrumental in building out every new line of business at Dunzo.

“Dalvir has been instrumental in building out every new line of business at Dunzo. He has been the key zero to one person from the founding team that just gets things Dun,” Biswas said in the email.

Suri was also one of the key leadership members in the firm, and his work portfolio included the development of new lines of businesses such as Dunzo Merchant Services (DMS).

Dunzo management is planning a major restructuring program in the wake of a financial crisis that has made it difficult to pay out salaries. Reliance Retail, the company owned by Mukesh Ambani and Isha Ambani, has invested a significant amount of money in the doorstep delivery firm Dunzo. The company is also expected to invest an additional USD 30 million (Rs 249 crore) in the firm, which will increase its stake to 25.8 percent.

Dunzo has been facing financial difficulties for several months now and has delayed the salaries of more than half of its workforce until July 20 this year. To reduce costs, the top management has also laid off 400 employees in the first half of the year, leading to rumors of liquidation.

According to recent reports, Dunzo is currently valued at around USD 800 million (Rs 6660 crore). Funding from Reliance Retail can help Dunzo overcome its financial crisis and take it a step forward.