Dunzo's board has seen five top-level resignations in the past two months as the on-demand delivery startup battles issues from a funding crunch to delayed salaries amid a company-wide overhaul.
Since Aug. 3, two co-founders, two Reliance representatives, and an investor representative have left the board, according to records available with the Ministry of Corporate Affairs.
Here's More Details:
Rajendra Madhav Kamath, head of finance at Reliance Retail, joined the board on Sept. 30, 2022, and left Dunzo's board on Aug. 3.
Vaidhehi Ravindran, partner at private equity platform Lightrock, joined as nominee director on Jan. 15, 2021, and resigned on Aug. 21.
Ashwin Khasgiwala, chief of business operations at Reliance Retail, joined the board on Sept. 30, 2022, and resigned on Aug. 3.
Dalvir Suri, co-founder at Dunzo, joined the board on Nov. 26, 2020, and resigned on Aug. 29. However, Suri is still a director at Dunzo Merchant Services Pvt. and Dunzo Wholesale Pvt.
Mukund Jha, co-founder and chief technology officer of Dunzo, resigned on Sept. 1.
This spate of exits has left Dunzo's board with only three members:
Siddharth Talwar, partner at Lightbox Ventures
Kabeer Biswas, founder and chief executive officer at Dunzo
Hongjin Kim, managing director at STIC Investments
Dunzo did not respond to BQ Prime's queries on the resignations. However, it denied that Mukund Jha was resigning from the startup altogether.
"Mukund remains an integral part of Dunzo’s leadership team," a spokesperson said. "While we are restructuring the organisation with new leaders driving key mandates, Mukund will continue to be an important part of the strategic leadership team, guiding and directing Dunzo’s future roadmap."
The resignations were first reported by The Morning Context.
The board exits come at a time when the company is facing a working capital crunch, with salaries being delayed for a large number of employees. The Bengaluru-based startup, which counts Reliance Industries Ltd. and Google LLC among its backers, has also been struggling to close a funding round to sustain its operations.
Its troubles also prompted it to fire about 380 employees in an effort to become leaner and improve profitability. Despite multiple pivots, the startup reported paltry revenue from operations of Rs 54.3 crore in the financial year 2022. The company has yet to file earnings for the last fiscal.
While revenue doubled from the preceding year, its loss widened to Rs 464 crore from Rs 229 crore in the previous year, according to data accessed from Tofler. It also posted an accumulated loss of Rs 1,230 crore.
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