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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…

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