According to the financial results for the fiscal year 2021-22, Dunzo, a hyperlocal quick commerce company backed by Reliance Retail and Google, reported a total revenue of Rs 67.7 crores. However, the company’s expenses amounted to Rs 531.7 crores.
Sources have revealed that Dunzo has put off 50 percent of the salary for some employees, specifically those in manager-grade positions and above. The company has informed employees that the remaining salary will be paid between July 15 and 25, citing rumours of restructuring amid a cash crunch.
Previously, in April of this year, Dunzo laid off 30 percent of its workforce after securing $75 million in funding from investors such as Reliance Retail and Google. The company also announced a pivot in its business model during a company-wide town hall meeting.
According to filings with the Ministry of Corporate Affairs, Dunzo’s total revenue for the fiscal year 2021-22 was reported at Rs 67.7 crores, with expenses amounting to Rs 531.7 crores. The company’s operating revenue increased from Rs 25.1 crores in FY21 to Rs 54.3 crores. However, despite this growth, the company incurred a consolidated loss of Rs 464 crores, which was twice the amount compared to the previous year. Employee benefit expenses were the company’s largest expenditure at Rs 138 crores, followed by advertising and promotional expenses, which increased almost six times from Rs 11 crores in FY21 to Rs 64.4 crores.