The layoffs, which will affect over 300 workers, are part of
a rejig announced by founder and Chief Executive Officer Kabeer Biswas at a
town hall on Wednesday, the newspaper reported, citing several people aware of
the matter.
Key backers Reliance Retail and Alphabet Inc have added
about $50 million of the funding, with other existing investors putting in the
rest, the newspaper reported.
Dunzo, Google and Reliance Retail did not immediately
respond to a Reuters' request for a comment.
Under the new business model, the company will cut about 50
percent of its dark stores and run only those that can be profitable or are
nearing that threshold, ET reported, adding that it will partner with
supermarkets and other merchants.
Biswas told employees at the town hall the firm had to take
this call to ensure it can hit profitability in the next 18 months, the report
added.
The move comes as growing demand for superfast dispatch of
household goods has led players to intensify their battle in ensuring users are
able to get their orders in 15 minutes or less.
The delivery firm continues to hold talks with other
investors such as Abu Dhabi Investment Authority (ADIA) but that capital may
only come after the business has stabilised and certain metrics are met, ET
reported, citing people in the know. © Reuters