Walmart is currently under scrutiny following a complaint letter from former Dunzo employees.
The letter concerns the appointment of Dunzo founder Kabeer Biswas as the head of Flipkart’s quick-commerce division, Flipkart Minutes.
Kabeer Biswas, who co-founded Dunzo in 2014, recently joined Flipkart to lead its newly launched quick-commerce segment.
However, his appointment has raised concerns among former Dunzo employees, who have sent a complaint letter to Walmart CEO Doug McMillon and Flipkart CEO Kalyan Krishnamurthy.
Concerns Raised
The complaint letter highlights Kabeer’s background, citing financial struggles, layoffs, and legal issues faced by Dunzo.
Former employees have expressed concerns about unpaid dues and creditors taking legal action for unpaid debts.
Additionally, some employees filed a police complaint against Kabeer at Indiranagar Police Station in Bengaluru.
Despite raising over $450 million, including $200 million from Reliance Retail in January 2022, Dunzo has faced significant financial challenges.
The company resorted to multiple rounds of layoffs and struggled to raise additional equity.
Dunzo’s creditors have taken the company to the National Company Law Tribunal (NCLT) over unpaid dues.
Walmart’s Response from Walmart
Walmart is reportedly investigating the concerns raised by former Dunzo employees.
The Morning Context claims to have seen the email sent by Walmart’s investigation team to some former employees of Dunzo.
The email expresses concern about hiring a person with a “criminal background”.
Kabeer’s appointment at Flipkart is seen as a strategic move to help the company compete with quick-commerce players such as Zomato-owned Blinkit, Swiggy Instamart, and Zepto.
Flipkart Minutes aims to deliver everything from biryani to hot beverages and iPhones to customers’ doorsteps in under 10–15 minutes.
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