Reliance-backed delivery firm Dunzo to restructure, co-founder quits

BENGALURU (Reuters) - Indian on-demand delivery platform Dunzo said on Monday that one of its four co-founders, Dalvir Suri, would leave and the cash-strapped, Reliance Industries-backed startup also announced an organisation-wide restructuring from this quarter.

Dunzo has been struggling to strike a funding deal in the past few months and has announced at least three rounds of layoffs, deferred or reduced salaries for some employees as well as reduced 50% of its dark stores.

The company's statement did not give further details on the restructuring. Dunzo will give employees details later this week, financial news website Moneycontrol reported. Dunzo did not immediately respond to a Reuters email seeking comment.

Suri joined the Bengaluru-based company in May 2015, about a year after it was founded and went on to lead its business-to-business unit, Dunzo Merchant Services (DMS).

"Dalvir has been instrumental in building out every new line of business at Dunzo ... and the DMS business has very capable leadership that's picking up directly after him," CEO and co-founder Kabeer Biswas said in a statement.

Dunzo did not say when Suri would leave nor did it name his replacement. Ankur Agarwal and Mukund Jha are the company's other co-founders.

Dunzo is in advanced talks to close a $25 million to $30 million funding round that will raise Reliance Retail's 25.8% stake in the firm, Moneycontrol reported last week.

 

(Reporting by Ashna Teresa Britto and Rama Venkat in Bengaluru; Editing by Savio D'Souza)