Startup Dunzo’s income increased by 67 percent in FY21, while losses shrank by 33 percent.

Dunzo founder
Dunzo founder

According to the latest financials presented by the firm, sales increased 67.2 percent to Rs 45.9 crore in the previous fiscal year, while losses decreased by 33 percent to Rs 225.2 crore.

 

In FY21, Dunzo‘s gross merchandise value (GMV) increased to Rs 590 crore from Rs 360 crore in FY20, representing the total value of transactions through the platform including delivery fees.

The 64 percent increase in GMV was due to increased demand for more online jobs, mostly due to the Covid-19 epidemic, as well as changing consumer behaviour, which resulted in greater orders in the supermarket, medication, food, and other areas.

According to statistics acquired through business analytics platform Tofler, the Google-backed startup’s net loss in FY20 was Rs 338.3 crore.

The Bengaluru-based company claimed its GMV increased by two-fold in the first quarter of 2022, to Rs 267 crore, compared to the last quarter of 2021.

Organic need and an attitudinal shift in consumer purchasing patterns during the pandemic were credited by Dunzo for a 64 percent rise in gross sales value in FY21.

Dunzo startup FY21

Dunzo has introduced Dunzo Daily, an immediate delivery service that will be expanded to the top 20 cities in India over the following 18 months.

According to last week, the startup is in the process of a funding round and plans to install over 300 mini fulfilment centres throughout 700 neighbourhoods in the next months, allowing deliveries to be made in under 19 minutes.

Dunzo’s discussions with Tata Digital have stalled over key aspects of the transaction, including the salt-to-steel corporation’s majority ownership. It’s also in negotiations with a variety of financial backers to fund $100-$120 million at a $500-$600 million value. It was recently appraised at $300 million.

According to the company, organic growth has allowed Dunzo to cut advertising and marketing costs by 86 percent year over year. Dunzo’s decision to launch Dunzo Daily comes at a time when companies like Swiggy, Zomato, and e-grocer Grofers are aggressively pursuing the market for rapid grocery delivery.

Dunzo was in negotiations with Tata-owned e-grocer last week about powering its 30-minute grocery delivery service.