Dunzo pares loss by 43%, ups revenue 1.6x in FY21

Google-backed delivery and ecommerce company Dunzo’s revenue has grown 1.6x in FY21 while serving as an essential service during the pandemic.

The firm has also reduced its cash burn by 43 per cent and used its distinct first-mover advantage to establish its dominance as a quick-commerce platform in the Indian market.

Dunzo has scaled its gross merchandise value by about 65 per cent in FY21, on the back of organic demand. It said more than 90 per cent of users signed up to the platform organically over the last year. This is driven by a behavioural shift with Indian consumers, who are adapting to more frequent, small-sized purchases for everyday products and consumables.

“We believe competitive pressures will go up, but being the team that created the category and led the market allows us to push innovation forward on behalf of our users,” said Kabeer Biswas, chief executive and co-founder of Dunzo. “We expect folks to mimic what we do, and we will continue to outinnovate on behalf of our consumers as we go forward.”

Dunzo has managed to drive advertising and marketing expenses down 86 per cent year-on-year (YOY). Combined with a reduction in operational costs, Dunzo is beginning to display operating leverage and has cut overall burn by 35 per cent in FY21.

To continue its success story in FY22, Dunzo expects growth to be fueled by its quickcommerce segment. In the April-june period of FY22, the company witnessed nearly 2x quarter-on-quarter growth.