wordpress blog stats
Connect with us

Hi, what are you looking for?

Dunzo FY21 revenues increase by 67%, even as losses narrow by 33% with lower advertising spends

Significant reduction in Marketing and Advertising spends help Dunzo reduce losses, even as revenues grow.

Dunzo delivery person
Credit: Aroon Deep

A 86 percent decrease in Google-backed e-commerce platform Dunzo’s advertisement and marketing expenses has resulted in a 67 percent increase of its revenue in the FY21, according to data provided by the company in a press release. The decrease in marketing expenses has also translated into a 43 percent decrease in cash burn for the company, the data indicated.

The time period of these figures which coincide with the pandemic and the subequent lockdowns in the country, signify the level of reliance Indian consumers had on e-commerce platforms such as Dunzo, Swiggy, Big Basket during the period. This also shows a significant behavioural shift with Indian consumers, who are adapting to more frequent, small-sized purchases compared to larger, monthly purchases for everyday products and consumables.


All the numbers

  • Gross merchandise value: GMV (which includes value of products solid and user delivery fees) increased from Rs 360 crore in FY 2020 to Rs 590 crore in FY2021.
  • Marketing expenses: This decreased from Rs 48.2 crore in FY 2020 to Rs 9.9 crore FY 2021
  • EBTIDA Burn: EBTIDA decreased from Rs 327 crore in FY 2020 to Rs 212.2 crore in FY 2021.
  • Overall burn decreased by 35 percent in FY21, the company said.
  • User base: 90 per cent users signed on to the platform organically over the last year

Gift someone a MediaNama subscription.

What is in hold for the future?

Kabeer Biswas, CEO and Co-Founder of Dunzo said in a statement that he expects that competitive pressures will go up. For FY22, the company said its expects growth in its Quick Commerce segment. According to an industry report by Redseer that Dunzo referred in its release, the addressable market for quick commerce is projected to be $75 Bn+ by 2025, creating a multi-billion dollar opportunity for Dunzo.

Advertisement. Scroll to continue reading.

In the coming weeks and leading up to 2022, the company said it will:

  • Set up 300 micro fulfillment centers across 700 neighborhoods in the country
  • Aim to facilitate deliveries in under 19 minutes
  • Increase services to 20 more cities in India in the next 18 months
  • 2,000 stock keeping units (SKUs) for Dunzo Daily for the 20 cities

Dunzo recently entered the grocery delivery segment

In a blog post from August 17, Dunzo announced that it entered the online grocery delivery space with Dunzo Daily. Dunzo pitched its new service as “ultra-fast grocery delivery,” promising to deliver orders in 19 minutes.

At the time of announcement, the service was active in Bengaluru for a few weeks now and Dunzo had claimed that it was growing over25%week on week with customers using the service 2.5 times a week

Meanwhile, ETtech reported that Tata’s plan to invest in Dunzo has hit a roadblock because the latter does not want to give up majority control. Interestingly, Tata recently acquired majority control in BigBasket, which is a rival to the up-and-coming Dunzo Daily, but both companies are figuring out a way to work together (more on this later in the post).

Separate app for cigarette orders

After removing cigarettes from its main app due to new Play Store policies, delivery service Dunzo launched an identical but slightly rebranded version of its Android app called “Dunzo Mo” that allows for cigarette orders.

The workaround app was silently made available on its website, and is available as an APK download outside the Play Store ecosystem; cigarette orders continue to be available on iOS and Dunzo’s web version. The company moved quickly — as it was just in April that Dunzo stopped offering cigarettes on its Android app and confirmed that the delisting was due to Google’s policies.

Advertisement. Scroll to continue reading.

Also Read


Written By

Among other subjects, I cover the increasing usage of emerging technologies, especially for surveillance in India

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.


Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.


This article addresses the legal and practical ambiguities in understanding the complex crypto ecosystem in India.


It is widely argued that the PDP Bill report seeks to discard the intermediary status of social media platforms but that may not be...


Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ