WhatsApp group turned into ₹6200 crore Indian firm, now hit by a major layoff | Tech News

WhatsApp group turned into 6200 crore Indian firm, now struggling to pay salaries

Indian company that started as a WhatsApp group is currently going through a turbulent phase and is unable to pay salaries.

By: AYUSHMANN CHAWLA
| Updated on: Sep 04 2024, 16:31 IST
WhatsApp group turned into  <span class='webrupee'>₹</span>6200 crore Indian firm, now struggling to pay salaries
A group of entrepreneurs started business using a WhatsApp group and turned it into a 6200 crore company. (Bloomberg)

WhatsApp is one the most used messaging platforms in the world and millions of users access the Meta-owned app for day to day communication. Although WhatsApp was initially launched just as a messaging platform, it evolved to something much bigger overtime. While a few use WhatsApp to reachout to people, a group of people used the platform to start a company that was last valued at over 6200 crore. Currently in the news for firing 150 employees and working with just 50 employees in the core team, the company that we are talking about is Dunzo. For those who are unaware, Dunzo is a quick grocery delivery platform that is currently functioning in major Indian cities. Cash-strapped Dunzo is struggling with mounting liabilities and overdue salaries.

Also read: Left IT job; forced to be a waiter: Techie shares his big mistake about ‘rage quitting' on Reddit

You may be interested in

MobilesTablets Laptops
21% OFF
Samsung Galaxy S24 Ultra
  • Titanium Black
  • 12 GB RAM
  • 256 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
10% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
17% OFF
Xiaomi 14 Ultra
  • Black
  • 16 GB RAM
  • 512 GB Storage

How a WhatsApp group became a 6200 crore Dunzo

Kabeer Biswas, alongside Ankur Agarwal, Dalvir Suri, and Mukund Jha, launched Dunzo during his move to Bengaluru following the acquisition of his first startup, Hoppr, by Hike. This transition provided Kabeer with a boost to further his entrepreneurial ambitions. Originally a computer science engineer, Kabeer explored his interests through work in a plastic factory in Silvassa before deciding to pursue an MBA. He honed his business acumen with Airtel, focusing on sales and customer service.

Also read
Looking for a smartphone? To check mobile finder click here.

Dunzo initially provided grocery, essential supplies, and other deliveries well before the emergence of competitors like Blinkit and Swiggy Instamart. It began as a WhatsApp group where customers could place their orders. Through steady growth and investment, Dunzo developed a dedicated app and expanded into additional cities.

Also read: “Never work for an Indian manager”: Microsoft employee based in Europe ‘warns' in Reddit post

Mukesh Ambani's Reliance Retail got interested in the rising startup and ended up investing USD 200 million ( 1600 crore). The investment took the valuation of Dunzo to over USD 775 million (over 6200 crore), according to The Times of India. However, the company has been under crisis for quite a long time now. It has delayed their employee's salaries multiple times over the past year and posted a loss of 1,800 crore in FY23, a 288 percent increase from the previous year.

One more thing! We are now on WhatsApp Channels! Follow us there so you never miss any updates from the world of technology. ‎To follow the HT Tech channel on WhatsApp, click here to join now!

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 02 Sep, 09:51 IST
Tags:
NEXT ARTICLE BEGINS
Not sure which Mobile to buy? Need help?