Dalvir Suri, one of the co-founders of the quick commerce company Dunzo, has stepped down from his position due to the company’s financial challenges and recent staff layoffs, according to several individuals who are familiar with the situation. Suri had been leading Dunzo’s business-to-business logistics division known as Dunzo Merchant Services (DMS). Dunzo has officially confirmed Suri’s departure and stated that they are in the process of restructuring the company on a broader scale this quarter.
All About the Dalvir Suri Department from Dunzo
Kabeer Biswas, the CEO and Founder of Dunzo acknowledged Suri’s significant contributions to the company, noting that he played a crucial role in launching various new business lines at Dunzo. Biswas mentioned that Suri had been considering taking a break for some time, and after dedicating over six years to building Dunzo, he is now planning to explore new opportunities.
In recent periods, DMS has become a vital component of Dunzo’s business model, particularly as the profitability of the quick commerce segment has been challenging, leading to downsizing efforts in this capital-intensive area. Sources indicate that the B2B division has been collaborating with approximately 30,000 merchants each month, with a logistics network consisting of roughly 70,000 to 75,000 delivery partners, handling approximately one million orders monthly. DMS operates in major cities, including Bangalore, Mumbai, Chennai, Hyderabad, Pune, Delhi-NCR, and Kolkata.
Biswas mentioned, “We are implementing some organizational changes to restructure our business starting this quarter, and the capable leadership within the DMS business will take over from Suri.”
Recently, Business Today reported that Dunzo is planning a new round of layoffs to reduce expenses. The company has informed its employees that they will receive their final settlements in January. Earlier in the year, following a $75 million funding round, the company, which is backed by Reliance and Google, laid off 30 percent of its workforce. Additionally, the company’s management decided to shut down 50 percent of its dark stores across the country as part of a pivot in its business model.
Meanwhile, Dunzo is in discussions with both new and existing investors to secure a $30 million funding round, which is seen as a lifeline for the company. Sources indicate that Reliance Retail and Google, its primary backers, are likely to participate in this funding round. Reliance Retail holds the largest stake in Dunzo at 25.8 percent, while Google is the second-largest shareholder with around 19 percent.
According to Ministry of Corporate Affairs filings, in the fiscal year 2022, Dunzo reported a total revenue of ₹67.7 crore, while its expenses amounted to ₹531.7 crore. Operating revenue stood at ₹54.3 crore, and the company reported a consolidated loss of Rs 464 crore. According to data from Tracxn, Dunzo has raised nearly $500 million from investors including Reliance Retail, Google India, Lightrock, Lightbox, Blume Ventures, and others.