Dunzo's losses increased by 2X to Rs 464 Cr in FY22, yet revenue doubled

Bengaluru-based hyperlocal grocery delivery startup, Dunzo incurred high operational costs in FY22, which resulted in a net loss of Rs 464 crore, up 2X from Rs 229.1 crore in FY21. 

Dunzo lost Rs 230 on each Dunzo Daily order from January to June this year. The company reported an EBITDA loss of Rs 176 crore in June and aimed to reduce it to Rs 100 crore by December.

However, the company's scale doubled in FY22 due to the launch of Dunzo Daily, its rapid commerce division.

Dunzo's annual financial filings show that its operating revenue increased by almost 2X to Rs 54.3 crore in FY22. Online platform services, which make up roughly 93% of the company's operating income, are the primary source of revenue.

Online platform service revenue increased more than twofold to Rs 50.6 crore in FY22 from Rs 24.7 crore in FY21. The provision of online platform services to affiliate merchants, selling traded items, subscriptions, advertisement services, and other platform services are among these offerings.

During FY22, revenue from merchant stores providing warehouse management increased 4X at Rs 1.6 crore. Additionally, Dunzo earned Rs 13.4 crore in revenue, primarily from interest on bank and security deposits, bringing its total earnings to Rs 67.7 crore.

With a 26% yearly spend, the company's employee benefits costs were the most significant cost component. In FY22, this expense increased by 50.3% to Rs 138.3 crore, which includes Rs 19.4 crore in ESOP costs.

Its ROCE and EBITDA margins are recorded at-31.95% and -645.64%, respectively. In the fiscal year that ends in March 2022, Dunzo spent Rs 9.8 for every rupee of operating revenue.

In addition, its delivery-related expenses rose 4.6X to Rs 134 crore in FY22 from Rs 29.4 crore in FY21, accounting for 25.2% of total spending. The marketing expense for Dunzo increased by 5.9X to Rs 64.4 crore.