Dunzo, the on-demand delivery platform, announced that it has achieved a neutral business burn through cost-cutting measures and expects to reach “corporate-level profitability” within the next 12 months. The company emphasized its growth by stating, “There’s a lot to be excited about – from our growing presence on the ONDC network, our strong logistics business, to the new avatar of Dunzo Daily,” said the company in a statement, referring to the open e-commerce network launched by the government and the company’s store network. “We aim to hit corporate-level profitability in 12 months.”

This statement came in response to concerns raised by its auditor, Deloitte, regarding Dunzo’s ability to continue as a going concern. Deloitte pointed out that Dunzo’s losses in FY23 had surged by 288% to Rs 1,802 crore, driven by high operational costs for customer acquisition. The liabilities exceeded its current assets by Rs 325.8 crore, indicating potential difficulties in repaying creditors.

Dunzo’s future viability relies on securing additional funding and improving its business operations. The company has emphasized that it has made significant improvements in its business and funding since Deloitte’s audit report was filed six months ago. The platform’s gross merchandise value crossed Rs 1500 crore in FY23, and the business burn is now neutral due to successful cost-cutting and optimization of its store network.

Dunzo also highlighted the strong performance of its logistics and business-to-business verticals, which have grown by over 128% while achieving gross merchandise neutrality.

Auditors had previously raised concerns about Dunzo’s ability to continue as a going concern in FY22, and the company has faced increasing challenges since then. It has taken measures such as employee layoffs, dark store closures, and salary adjustments to control cash burn.

In FY23, Dunzo’s expenses increased fourfold to Rs 2,054 crore, primarily due to advertising spending, while revenue from operations grew by 4.1 times to Rs 226 crore in FY23 from Rs 54 crore in FY22.

Exciting news! We’re now on WhatsApp Channels too.  Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!

Five members, including co-founders Dalvir Suri and Mukund Jha, and representatives of Reliance Retail and Lightrock, have reportedly left Dunzo’s board.

Dunzo has secured $498 million in funding from investors such as Google, Reliance, Alteria Capital, and Lightrock India.

Dunzo, the on-demand delivery platform, announced that it has achieved a neutral business burn through cost-cutting measures and expects to reach “corporate-level profitability” within the next 12 months. The company emphasized its growth by stating, “There’s a lot to be excited about – from our growing presence on the ONDC network, our strong logistics business, to the new avatar of Dunzo Daily,” said the company in a statement, referring to the open e-commerce network launched by the government and the company’s store network. “We aim to hit corporate-level profitability in 12 months.”

This statement came in response to concerns raised by its auditor, Deloitte, regarding Dunzo’s ability to continue as a going concern. Deloitte pointed out that Dunzo’s losses in FY23 had surged by 288% to Rs 1,802 crore, driven by high operational costs for customer acquisition. The liabilities exceeded its current assets by Rs 325.8 crore, indicating potential difficulties in repaying creditors.

Dunzo’s future viability relies on securing additional funding and improving its business operations. The company has emphasized that it has made significant improvements in its business and funding since Deloitte’s audit report was filed six months ago. The platform’s gross merchandise value crossed Rs 1500 crore in FY23, and the business burn is now neutral due to successful cost-cutting and optimization of its store network.

Dunzo also highlighted the strong performance of its logistics and business-to-business verticals, which have grown by over 128% while achieving gross merchandise neutrality.

Auditors had previously raised concerns about Dunzo’s ability to continue as a going concern in FY22, and the company has faced increasing challenges since then. It has taken measures such as employee layoffs, dark store closures, and salary adjustments to control cash burn.

In FY23, Dunzo’s expenses increased fourfold to Rs 2,054 crore, primarily due to advertising spending, while revenue from operations grew by 4.1 times to Rs 226 crore in FY23 from Rs 54 crore in FY22.

Exciting news! We’re now on WhatsApp Channels too.  Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!

Five members, including co-founders Dalvir Suri and Mukund Jha, and representatives of Reliance Retail and Lightrock, have reportedly left Dunzo’s board.

Dunzo has secured $498 million in funding from investors such as Google, Reliance, Alteria Capital, and Lightrock India.