In another major departure at troubled Dunzo, head of finance Sudharshan N has departed from the quick commerce startup.
Sudharshan’s LinkedIn bio reads that he wrapped up his tenure as the head of finance at Dunzo in September 2023 after a year-long stint at the company. The exit comes amid an upheaval at the quick commerce startup which has been bogged down by cash flow issues and delays in paying salaries of employees.
There is no clarity on who will take over the reins of the finances of the company.
Inc42 has reached out to Dunzo for an official confirmation on the matter. The story will be updated on receiving a response. Moneycontrol was the first to report the development.
At 14 months, this was the shortest stint of Sudharshan’s career who previously spent nearly four years at foodtech major Swiggy and almost eight years before that at Ernst & Young (EY). An alumnus of Bangalore University, Sudharshan holds an undergraduate degree in commerce and is a certified chartered accountant (CA).
More importantly, the departure comes at a time when Dunzo has been struggling financially and has been looking to raise capital from investors. Just last week, the company was said to have been gearing up for board approval to raise up to $35 Mn via a rights issue at a steep valuation cut. The startup was reportedly planning to raise the funds at a valuation of $200 Mn as against its previous valuation of $800 Mn.
Sudharshan was at the heart of the startup’s fall from grace as he oversaw delayed salaries and missed payment deadlines owing to cash flow issues. After promising multiple times to release pending salaries which have been held since July, the startup has now moved the deadline all the way to January-February 2024.
Besides Sudarshan, Dunzo cofounder Dalvir Suri has left the company while reports surfaced last week that another cofounder Mukund Jha was in the process of leaving the startup. On top of that, Reliance Retail’s Ashwin Khasgiwala and Rajendra Kamath, and Lightrock India’s Vaidehi Ravindran have stepped down from Dunzo’s board.
There have also been key exits across teams, including head of product Akansha Kumari, which has led to high attrition rates, compounded by mass layoffs undertaken in the past one year.
Meanwhile, the company is said to have opted for payroll financing company OneTap to pay wages on time and stave off the salary crisis.
The saga began to unravel as it emerged that the quick commerce major raked up cumulative losses to the tune of more than $150 Mn against a mere revenue of $12 Mn between 2018 and 2022.
As mounting losses burnt through $240 Mn funding raised from Reliance Retail, the company began a restructuring drive which involved slashing headcount and pivoting to a hyperlocal model even as competitors Blinkit, Zepto and Swiggy Instamart raced ahead.
As the company prepares for leaner times, it remains to be seen if it can stave off the current crisis.
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