Delivery and errand service provider Dunzo has reportedly fallen behind on paying salaries for November to its current employees.

What Happened: Despite the company’s collaboration with OneTap, a revenue financing firm earlier this year, Dunzo appears to be grappling with ongoing financial difficulties, leading to a dealy in paying salaries for the month, Moneycontrol reported, citing messages from the company to employees.

In a recent communication to its employees, the company said its investor had assured it that required funds would be wired to the startup by early next week. Dunzo said it would then be able to release November salaries and manage salaries for the next couple of months until it closes out an equity round in January.

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Earlier reports had indicated that Dunzo was in the process of securing $25-30 million (up to ₹250 crore) in capital to sustain its operations, with the likelihood of additional investments from existing backers.

Acknowledging the external factors influencing the fresh funding, the company has reportedly given a worst-case timeline of December 15 for payment of dues. Dunzo expressed regret for the delay, seeking continued support from employees.

In the preceding month, Dunzo had indicated progress on the funding front, stating that it had had better cash flows and lower burn in its business, adding that it was also in the last leg of closing a funding round. However, no further details were provided.

Dunzo already has outstanding dues to existing employees, who have been informed that their payments will be settled only in the coming year following multiple delays.

The development also comes at a time when other Indian startups have had a rough year. Edtech giant Byju’s has been mired in legal and financial troubles for the better part of the year, while buy now, pay later firm ZestMoney and educational platform Front Row shut their operations.

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