Dunzo's business grew by 94% in FY22 on the back of quick commerce service
Hyperlocal delivery and quick commerce brandon Monday announced its financial results for FY22, stating its overall business scaled by 94% during the year. This was fuelled by the launch of Dunzo Daily, its quick commerce business, which grew by 27X within the year and now constitutes 60% of its overall business, the startup reported.
Post its launch in Bengaluru, Dunzo Daily expanded to three new metro cities—Mumbai, Delhi and Chennai—as of March 2022.
Speaking about the brand, Kabeer Biswas, CEO and Co-founder of Dunzo, stated,
“In FY22, we focused on putting Dunzo Daily on the q-commerce map in India. Our planned investments in people, delivery network and infrastructure supported our ambitious growth. In FY23, while focusing on growth, we will further optimise our investments to build robust unit economics that can help us give more back to the customers in a competitive manner. We will continue to innovate to make Dunzo a synonym for convenience for our users. We are in this game for the long run, and so are our investments and actions for our consumers."
Dunzo’s other verticals consist primarily of its D4B business—which provides intra-city express package delivery for local merchants, SMEs, and enterprises—as it registered a growth of 57% while also driving 50% higher profitability per order versus the previous year. The D4B business enables over 20,000 merchants to run local logistics and has recently partnered with ONDC as a logistics provider. The B2B business adds an important profitable revenue stream for Dunzo and ensures efficient delivery fleet utilisation.
Looking ahead to billion users
Currently, Dunzo Daily is present in eight cities in India. In January 2022, the startup received $240 million in funding from Reliance Retail and other existing investors.
Going forward, the startup plans to focus on growing its quick commerce business and achieving market leadership in multiple geographies while moving towards stronger unit economics.
"B2B will be a focus segment for Dunzo, which will scale with the partnership with Reliance Retail. Dunzo has already started fulfilling order deliveries for the Reliance Retail network and is expanding its coverage across more Reliance stores and cities, to integrate deeper into the Reliance Retail network," the company stated.
Edited by Kanishk Singh