Dunzo, the popular on-demand delivery service, has recently disclosed its financial performance for the fiscal year 2023. According to the consolidated financial statements submitted to the Registrar of Companies, Dunzo has recorded a substantial loss of Rs 1,800 crore in FY23. This represents a remarkable 288 percent increase in losses compared to the previous fiscal year.
Despite the significant losses, the company experienced a notable surge in revenue. The total revenue from operations skyrocketed by 4.1 times, reaching Rs 226 crore in FY23, up from Rs 54 crore in FY22, as reported by Entrackr.
Dunzo’s revenue structure in FY23 consisted of 62 percent of income generated from the sale of traded products, totaling Rs 141 crore. In contrast, during the previous fiscal year, the majority of income was derived from platform services and warehouse fees.
The largest share of the company’s expenses in FY23 was attributed to the fees paid to the runners, who handle on-demand deliveries. This cost category saw a significant increase, growing by 2.7 times, from Rs 134 crore in FY22 to Rs 367 crore in FY23.
The cost of employee benefits also witnessed a substantial increase in FY23, rising by 2.4 times to Rs 338 crore. This figure includes Rs 74 crore allocated for Employee Stock Ownership Plan (ESOP) costs, which were settled in cash, as per information obtained from TheKredible.
Overall, Dunzo’s total costs in FY23 surged by 3.86 times, reaching Rs 2,054 crore, up from Rs 532 crore in FY22. This increase in costs was largely driven by a substantial uptick in advertising spending.
These financial results come at a challenging time for Dunzo, as the company has faced the departure of several top-level executives, including co-founders and its finance head. Additionally, there have been delays in salary payments to employees and mass layoffs across various phases of the company.
Reports suggest that Dunzo is currently in the process of laying off at least “150-200” more employees due to severe financial constraints. Further reduction in the workforce by approximately 30-40 percent is anticipated.
The company has communicated to the affected employees that they can expect to receive their full and final settlements in January.
In conclusion, Dunzo’s FY23 financial report reveals significant losses despite increased revenues, underscoring the challenges the company is currently facing in a highly competitive market.
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