Dunzo's losses up 2X to Rs 464 Cr in FY22 while revenue doubles

Bengaluru-headquartered hyperlocal delivery startup Dunzo incurred a net loss of Rs 464 crore in FY22—a 2X spike from Rs 229.1 crore in FY21—due to of significant operational costs. During the first half of the year (Jan to June), Dunzo lost Rs 230 on each Dunzo Daily order. In June, the company had an EBITDA loss of Rs 176 crore, which it projected to cut to Rs 100 crore by December.

However, the company’s scale grew two-fold in FY22 fuelled by the launch of Dunzo Daily, its quick commerce business.

According to its annual financial statements, Dunzo’s revenue from operations grew over 2X to Rs 54.3 crore in FY22. The firm generates revenue largely from online platform services which contributed nearly 93% to the total operating income.

The collections from online platform services increased over 2X to Rs 50.6 crore in FY22 from Rs 24.7 crore in FY21. These services include providing online platform services to partner merchants, advertisement services, sale of traded goods, subscriptions, and other platform services. 

Revenue from merchant stores for providing warehouse management jumped 4X to Rs 1.6 crore during FY22. Dunzo also made Rs 13.4 crore mainly from interest on bank and security deposits which pushed its total revenue to Rs 67.7 crore.

The company's employee benefits expense constituted the largest cost element, forming 26% of the annual expenditure. This cost surged 50.3% to Rs 138.3 crore in FY22, which includes Rs 19.4 crore of ESOPs expenses. 

Its EBITDA margin and ROCE are registered at -645.64% and -31.95%. On a unit level, Dunzo spent Rs 9.8 to earn a rupee of operating revenue in the fiscal year ending March 2022.

Further, its delivery-related expenses accounted for 25.2% of the overall spending and shot up 4.6X to Rs 134 crore in FY22 from Rs 29.4 crore in FY21. Dunzo’s marketing cost spiked 5.9X to Rs 64.4 crore.