Dunzo: The Future of Hyperlocal Delivery Services in India Amidst Pandemic Woes


Dunzo, a Bengaluru-based hyperlocal logistics startup, recently made major headlines across the tech industry as it announced its third round of layoffs. The move sparked widespread speculation about the company’s financial conditions, which many believe have been hit by the COVID-19 pandemic and related lockdowns across the country.

From delivering groceries and medicines to running errands, Dunzo has been providing its customers with on-demand delivery services across India since 2015. The company prides itself on providing safe and sustainable last-mile connectivity, while also working towards improving the lives of its customers and delivery partners. However, the ongoing layoffs have raised concerns about its sustainability and ability to survive in an increasingly competitive market.

History and Funding

Founded by three engineers, Kabeer Biswas, Mukund Jha, and Dalvir Suri in 2014, Dunzo began its journey by providing bike taxi services, similar to Uber and Ola, in Bengaluru. However, the company later pivoted to hyperlocal delivery services to tap into the growing demand for doorstep deliveries.

With its innovative business model and a team of dedicated professionals, Dunzo quickly secured funding from leading venture capitalists, including Google, Blume Ventures, and Aspada Investments. In a little over five years, the company raised a total of $382 million, making it one of the most well-funded startups in India.

Performance and Reason for Layoffs

Despite the impressive funding, Dunzo has been struggling to stay afloat in the aftermath of the pandemic. The company witnessed a sharp decline in orders during the initial months of the lockdown, which led to a massive revenue loss. To overcome this, the company resorted to cost-cutting measures, which included reducing salaries, restructuring teams, and cutting down on operational costs.

In July 2023, Dunzo announced its third round of layoffs, which saw the company cutting down on its workforce by nearly 30%. The move came just a few months after the company had laid off over 15% of its employees, citing similar reasons. This time around, the company cited delayed payments from customers and missed salary deadlines as the primary reasons for the layoffs.

Statement from Company Stakeholders

The announcement of the layoffs has sparked mixed reactions from company stakeholders and investors. While some have expressed concern over the company’s future, others have welcomed the cost-cutting measures as necessary steps to ensure growth in the long run.

According to Kabeer Biswas, the CEO of Dunzo, the company is committed to rebuilding its operations and securing a sustainable business model. In a statement to the press, Kabeer assured employees and customers that the company is doing everything possible to overcome the challenges posed by the pandemic and emerge stronger.


The current economic conditions have hit the Indian startup ecosystem hard, and Dunzo is no exception. While the company has come a long way since its inception in 2014, it still has a long way to go before it can establish itself as a leader in the hyperlocal delivery space. The recent layoffs may have been necessary, but they have also raised concerns about the future of the company and whether it will be able to recover from the current crisis. With its innovative business model, dedicated team, and solid backing from investors, Dunzo has the potential to emerge as a winner in the post-pandemic world. However, the road towards success will require a strategic approach, the ability to adapt, and a lot of hard work and determination.

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