In fiscal year 2022, the company’s loss more than doubled from 229 crore in the previous fiscal year to 464 crore. Operating revenue increased to 54.3 crore from 25.1 crore in FY21.
Google-backed delivery platform Dunzo joins a long list of Indian startups cutting headcount to cut costs.
“As we scale from 10 to 100, we are learning how to redefine business processes at scale. Any decision that impacts people is tough and always our last option. Last week, we had to part ways with 3% of our team strength,” said Kabeer Biswas, co-founder and chief executive officer (CEO), Dunzo.
According to information available on LinkedIn, Dunzo has 3,000 employees, meaning the startup has opened its doors to around 90 employees. The company does not disclose the number of employees it has laid off.
“Whatever the numbers, these are people who chose to build their careers with Dunzo, and it is sad to have talented colleagues leave us. We are extending the best support possible to help them during this transition,” Biswas said.
Dunzo last raised $240 million in a funding round led by Reliance Retail Ventures Ltd. in January 2022. This included other investors, including Lightbox and Lightrock, with a “conservative” valuation after investing $800 million. Raising an additional $250 million to $300 million to support expansion plans and fund his fast commerce business.
Dunzo originally planned to go public in 2023, but is now devoting more time to its fast-commerce business before going public. The quick commerce category will evolve over the next two to three years, Biswas said in an interview last year. Up to 17,000 people have lost their jobs in the past few months as Indian startups cut their workforce to become profitable.