Delivery startup Dunzo reports Rs 590Cr GMV in FY21, losses narrow by 33%

Dunzo, a hyperlocal delivery startup, saw a dramatic difference in its FY21 financial report. According to the company's recent financials, The startup income went up by 67.2% to Rs 45.9 crore in the previous fiscal year, while losses decreased by 33% to Rs 225.2 crore.

In FY21, Dunzo sold over Rs 590 crore in the gross product on its platform, representing a 1.6X increase over the previous year's gross retail sales of Rs 360 crore (FY20).

According to the startup, The 64% increase in GMV was due to increased demand for more online jobs, mostly due to the Covid-19 pandemic, as well as changing consumer behavior, which resulted in larger orders in the groceries, medication, food, and other categories. Users may obtain groceries and other household goods delivered in less than 30 minutes, or even 15 minutes, using this innovative style of online eCommerce.

Rather than storing hundreds of thousands of stock-keeping units, dark stores operated by delivery platforms typically stock high-demand commodities (groceries, milk, basics, home necessities, and so on) (SKUs). Swiggy, Dunzo, and Grofers, among other hyperlocal and grocery delivery firms, have been experimenting with this concept in recent months.

The Bengaluru-based firm said its GMV increased by two-fold in the first quarter of 2022, to Rs 267 crore, compared to the final quarter of 2021 because of this increasing demand for ‘quick-ecommerce’ (qCommerce) in the Indian market.

Dunzo has introduced Dunzo Daily, a quick delivery service that will be expanded to the top 20 cities in India over the following 18 months. The startup wants to open over 300 dark stores spanning 700 areas around the country in the next weeks, allowing for delivery in under 19 minutes.

As because according to Dunzo, the qCommerce model, which relied on dark stores, generated gross goods sales of INR 267 crore in Q1FY22, up 1.9 times from the previous quarter (Q4FY21).

“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. We expect folks to mimic what we do, and we will continue to out-innovate on behalf of our consumers as we go forward,” said Kabeer Biswas, co-founder & CEO of Dunzo, in a statement.

Dunzo is progressively extending its B2B activity, delivering last-mile logistics as a service to offline retailers wishing to sell to clients within their hyperlocal territory, in addition to building dark storefronts. Restaurants, cafes, and gourmet stores, for example, have recently begun to sell directly to customers by posting their menus on social media and depending on platforms like Dunzo to serve hyperlocal orders.

The company claimed that it has increased order frequency with users transacting more than two times per week. It also said that its unit economics has reduced its expenses per rupee of operating revenue earned to about Rs 6 in FY21 from Rs 13 in FY20.

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