Dunzo Co-Founder Mukund Jha Set to Exit Startup: Report
- ByStartupStory | October 3, 2023
Mukund Jha, the co-founder and Chief Technology Officer (CTO) of Dunzo, is reportedly preparing to depart from the on-demand delivery startup, making him the second co-founder to exit within a week, according to sources familiar with the matter.
This development follows closely on the heels of the news, reported by Moneycontrol just a day ago, that Dalvir Suri, another co-founder of Dunzo, is also leaving the embattled startup. Suri had been associated with Dunzo since 2015.
While Mukund Jha’s precise next move remains unclear, insiders suggest that he has already stepped back from daily operations, and a formal announcement regarding his exit may be forthcoming in the coming weeks. In fact, certain employees within the company have already been informed of Jha’s impending departure.
However, Dunzo has officially denied Jha’s departure. A spokesperson for the company stated, “Mukund remains an integral part of Dunzo’s leadership team. While we are restructuring the org with new leaders driving key mandates, Mukund will continue to be an important part of the strategic leadership team guiding and directing Dunzo’s future roadmap.”
On October 3, it was reported by The Morning Context that Mukund Jha had exited Dunzo’s board on September 1. In August, Dalvir Suri, Vaidhehi Ravindran from Lightrock, and Rajendra Kamath and Ashwin Khasgiwala from Reliance Retail had all stepped down from the company’s board.
It’s worth noting that Jha, Suri, and Ankur Aggarwal, the co-founders of Dunzo, do not have ownership stakes in the company. Instead, they received salaries and held ESOPs (employee stock ownership plans), similar to several other employees, which Dunzo has postponed several times in the past.
In contrast, Dunzo co-founder and CEO Kabeer Biswas retains approximately 3.6 percent ownership of Dunzo, making him the sole co-founder with a stake in the company. Jha’s departure coincides with Dunzo’s ongoing fundraising efforts, with plans to secure between $25-30 million in capital to sustain its operations. There are indications that Reliance Retail may increase its stake in the company as part of this fundraising.
As it seeks to secure funding, Dunzo has significantly reduced costs by closing dark stores and laying off over 500 employees.
Mukund Jha, who joined Dunzo in 2015, played a pivotal role in communicating layoffs and salary delays to employees. He conducted several company-wide town hall meetings and addressed questions from concerned staff members. Recently, Jha informed employees that Dunzo had postponed previous funding rounds to protect its valuation.
Since 2015, Dunzo has raised nearly $500 million from investors, including Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 percent, with Google as the second-largest shareholder at around 19 percent ownership, according to Tracxn, a private markets data provider.
Follow Startup Story
Related Posts
