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Cash-strapped startup Dunzo has told employees, in an internal email, that it would pay the remaining salaries for June and July latest by February 2024, citing the current business situation.

The payout will include an interest of 12% per annum based on the employee’s service period, Dunzo said in the email, which was accessed by YourStory.

For former employees, the remaining payments, which include August and September salaries for the days served, will be paid by January-February 2024, as part of the full and final settlement, according to the email.

“We are working towards ensuring all pending salaries are paid at the earliest. However, we regret to inform you that given the present business situation, the revised timelines by which we will clear pending dues, including salaries for the months of June and July, if any, is January – February 2024,” the email to employees stated.

“Once again, we apologize for this delay. We truly appreciate your patience and understanding, and we reassure you that we are doing our best to resolve this issue,” the company added.

The Reliance Retail-backed company first communicated the delay in pending salaries of June-July in August. It said that employees who resigned or were laid off by Dunzo on or after June 1, 2023 would be paid their outstanding salaries for June and July by the first week of October.

However, the payout date has now been moved to January-February 2024.

Dunzo had tied up with payroll financing firm OneTap to disburse August salaries.

YourStory has reached out to Dunzo for comments. The story will be updated once the response comes.

The development comes shortly after two of Dunzo’s co-founders—Dalvir Suri and Mukund Jha—were said to have exited the Bengaluru-based firm, as it battles a severe liquidity crisis.

Dunzo denied Jha’s exit and added that Jha would remain an integral part of the leadership while the company undergoes restructuring. Both Jha and Suri had played key roles in day-to-day operations at Dunzo over the last few months.

Suri, along with co-founders Mukund Jha and Ankur Aggarwal, have no equity in the company. CEO Kabeer Biswas owns 3.57% of the Bengaluru-based firm, as per data from Tracxn.

The startup is said to be in talks with multiple investors to raise $25 million – $35 million to keep the engines running, according to media reports. The financial crunch has prompted Dunzo to resort to workforce trimming, salary delays, halt in operations, and restructuring of business models over the last few months.