WhatsApp Group, which became a 6200 crore Indian company, is now facing massive layoffs
WhatsApp is one of the most used messaging platforms in the world, and millions of users access the Meta-owned app to communicate on a daily basis. While WhatsApp initially launched as a messaging platform, it has evolved into something much larger over time. While a handful of people use WhatsApp to reach people, a group of people have used the platform to create a company that is most recently valued at over $1 billion. ₹6200 crore. There is news of laying off 150 employees and working with only 50 employees in the core team, the company we are talking about is Dunzo. For those who don’t know, Dunzo is a fast grocery delivery platform currently operating in major cities of India. Dunzo is cash-strapped and is struggling with rising debts and overdue salaries.
How a WhatsApp group becomes a ₹6200 crore Dunzo
Kabeer Biswas, along with Ankur Agarwal, Dalvir Suri and Mukund Jha, launched Dunzo during his move to Bengaluru after Hike acquired his first startup, Hoppr. The move gave Kabeer the impetus to fuel his entrepreneurial ambitions. Originally a computer science engineer, Kabeer explored his interests through a job at a plastics factory in Silvassa before deciding to pursue an MBA. He honed his business acumen with Airtel, focusing on sales and customer service.
Dunzo initially offered grocery, essentials, and other delivery services before competitors like Blinkit and Swiggy Instamart emerged. It started as a WhatsApp group where customers could place orders. Through steady growth and investments, Dunzo developed a dedicated app and expanded to other cities.
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Mukesh Ambani’s Reliance Retail has taken an interest in this emerging startup and has invested $200 million ( ₹1600 crore). This investment has taken Dunzo’s valuation to over US$775 million (over ₹6200 crore), according to The Times of India. However, the company has been in crisis for quite some time. The company has delayed employee salaries several times in the past year and has posted losses. ₹1,800 crore in FY23, up 288 percent over the previous year.
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