Bengaluru-based hyperlocal services startup Dunzo has become a social media star with its witty and relatable campaigns, which has certainly won it a lot of fans. Coupled with multiple funding rounds to acquire new users, it didn’t come as a surprise when it claimed to be doing over 2Mn deliveries every month. But that growth has come at such a great cost that even Dunzo’s funding spree may not be enough for long.
The company filings show that its expenses for business promotions and marketing only went up a staggering 62X in the financial year ending March 2019. At the same time, Dunzo’s losses and overall expenses have grown 7x each.
Dunzo: Can It Deliver Revenue?
Ankur Aggarwal, Dalvir Suri, Mukund Jha, and Kabeer Biswas founded Dunzo in 2015. It lets users order food, groceries and other household items from stores nearby or get tasks done such as delivering parcels or picking up documents etc through riders or delivery partners.
The company has been raising funds continuously and is backed by investors such as Google, Blume Ventures, Deep Kalra and others It last raised $45 Mn in Series D funding round. The company said that it has seen 40X growth in the last 18 months clocking in over 2Mn deliveries every month.