Lessons from Dunzo

Late last month, Dunzo sacked 75% of its people, reducing the total number of employees to just 50. It didn’t come as surprise as the once marquee name in hyperlocal delivery had reported a staggering loss of Rs 1,801 crore in FY23, a near four-fold increase from Rs 464 crore in the previous fiscal year. This ongoing financial strain had led to delays in salary payments for both current and former employees, as well as outstanding dues to vendors. For quite some time, Dunzo has been desperately trying to reduce its costs and extend the runway. It has also been frantically searching for capital to survive, while also trying to claw back profits to settle its mounting liabilities.