Dunzo, a hyperlocal delivery platform, abruptly suspended its website and mobile application on Monday, a negative development for India’s rapid commerce sector.
Its website is showing the message, “{“error”:”Something went wrong.”}.” The mobile app is displaying, “Something doesn’t seem right.”
Following the departure of its remaining cofounder and CEO, Kabeer Biswas, who has joined Flipkart to lead its quick commerce venture, Minutes, the closure has occurred.
The process of migrating software applications from one environment to another is called app migration.
In the interim, Inc42 was informed by sources that all of Dunzo’s employees had left the company. On January 9, a few workers also complained to the Bengaluru police station in Indira Nagar against co-founder Kabeer Biswas about their unpaid salary.
According to the lawsuit, which Inc42 was able to access, Dunzo has failed to pay the salaries of around 400 workers.
According to the sources, Biswas is expected to meet with the investigating officer about the situation tomorrow, January 14.
Due to a lack of funds, Dunzo has repeatedly delayed staff salaries over the past 12 months. In addition to not paying salaries for November 2024, it postponed paying salaries for June and July for several months.
Due to financial difficulties, Dunzo let go of several employees in 2023 and 2024, and a small number of people left the firm to work for other companies.
Days after Biswas left Dunzo, the most recent development occurred. He was the sole cofounder still working for the startup. Biswas will join “Flipkart Minutes” to oversee the operations of the e-commerce behemoth’s rapid commerce division.
According to reports, Dunzo has made purchase offers to Reliance Retail, Flipkart, PhonePe, and Swiggy.
Additionally, Reliance Retail wrote out its $200 million investment in Dunzo, according to a story published by Inc42 last week.
When Dunzo was first established in 2014, it provided pick-and-drop services. In 2021, it switched to fast commerce, and in 2022, Reliance Retail provided $240 million in capital.
