- Dunzo, a quick commerce platform, has faced several challenges in recent months, including the departure of top-level executives, financial difficulties, delayed salaries, and mass layoffs.
- Despite experiencing a fourfold increase in revenue in the last fiscal year (FY23), Dunzo has been unable to control rising expenses, resulting in significant losses.
- In FY23, Dunzo’s revenue from operations surged to Rs 226 crore from Rs 54 crore in FY22, representing a 4.1X growth.
- Collections from the sale of traded goods, primarily through the dark store model, formed a significant part of Dunzo’s operating revenue in FY23.
- However, Dunzo’s expenses, including runner contact fees, employee benefits, advertising, rent, and various operating costs, increased significantly, leading to losses of Rs 1801 crore in FY23 and an EBITDA margin of -677%.
- Dunzo is reportedly seeking fresh funding, and its valuation may decrease from $800 million to $200 million in a new round.