Google-backed quick commerce startup’s losses narrow by 43%

Dunzo, a Google-backed quick commerce platform, announced that its revenue went up 1.6x to hit approximately US$6 million in fiscal year-end 2021 compared to FYE 2020.

The India-based startup attributed this rise to the role it assumed amid the Covid-19 pandemic. Dunzo has become an essential service as more users opt to order groceries online, which they can do from the safety of their homes.

Photo credit: Dunzo

The company also reduced its annual losses by 43% in FYE 2021, according to a statement.

“The decrease in losses was driven by a cut in expenses: the cost of doing operations, such as letting go of office spaces, lack of marketing and promotional spending, and the organic demand that the platform witnessed during the last year,” a Dunzo spokesperson told Tech in Asia.

The startup said it drove down advertising and marketing expenses 86% year on year in FYE 2021.

Dunzo also scaled its gross merchandise value by 65% during the financial year on the back of organic demand. It says that more than 90% of users signed up to the platform organically over the last year.

According to an industry report by RedSeer Consulting, the addressable market for quick commerce is projected to reach US$5 billion by 2025.

Leveraging local retail and its fulfillment centers, Dunzo aims to deliver groceries, fresh products, medicines, and other consumable products within 15 to 20 minutes. It plans to add over 300 micro fulfillment centers across 700 neighborhoods in the country by early 2022, facilitating the express delivery of groceries.

See also: Online grocery wars: Grab challenges Lazada for dominance

Dunzo also plans to expand its services to India’s top 20 cities in the next 18 months. It competes with Tata Sons’ BigBasket, Swiggy’s Instamart, and Zomato-funded Grofers in the quick commerce segment.