Dunzo Records a Loss of Rs 1,800 Crore in FY23 as Revenue Soars 4.1X: Report Dunzo, the grocery delivery and courier service company, has reported a significant loss of approximately Rs 1,800 crore in the fiscal year 2023.
Despite this substantial loss, the company’s revenue from operations experienced a remarkable increase, rising by a factor of 4.1 to reach Rs 226 crore, up from Rs 54 crore in FY22. The primary source of revenue was the sale of traded goods, constituting nearly 62% of the total revenue, amounting to Rs 114 crore in FY23, as detailed in a report by Entrackr.
The company’s losses were attributed to substantial investments in areas such as dark stores, advertising, and employee-related expenses. These factors contributed to the losses surging by 3.8 times, reaching Rs 1,801 crore in FY23, up from Rs 464 crore in the previous fiscal year, according to the report.
Notably, Dunzo experienced a series of high-level departures recently. Operating costs, including advertising expenses, rent, contracted workforce, liquidation damages, IT expenses, legal fees, and other overheads, collectively increased the company’s overall expenses to Rs 2,054 crore in FY23.
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!
This marked a nearly 3.86-fold rise from the Rs 532 crore incurred in FY22.
Established in 2015 by Kabeer Biswas, Ankur Aggarwal, and Mukund Jha, Dunzo initially started as a pick-up and drop service before diversifying into the quick commerce sector, offering 19-minute grocery deliveries. The company has expressed its intention to expand further into the business-to-business logistics segment, which is expected to be a major driver of the firm’s future business endeavors.