Hyperlocal logistics startup Dunzo’s losses widened more than 100% to Rs 338.3 crore in the financial year ended March 2020 compared to Rs 168.9 crore in FY19.
The startup’s total income surged nine fold or 828.5% to Rs 32.3 crore in FY20, up from Rs 3.5 crore last year. Its operational revenue stood at Rs 27.4 crore, a significant improvement from Rs 76.5 lakhs in FY19. In the same period, total expenses grew 112.9% to Rs 359.4 crore. according to regulatory filing accessed from VCCEdge.
While other expenses stood at Rs 162.5 crore, a major chunk of the expenses went into advertising and marketing cost which increased by 106.4% to Rs 48.1 crore in FY20. Another cost component in the category, business promotion expenses, grew 829% to Rs 28.8 crore from Rs 3.1 crore last year.
“The company is in its sixth year of commercial operations where its focus is to capture the online logistic service market through competitive pricing and greater brand recognition. Given the highly competitive environment, the company introduced multiple incentive schemes to grow its own market share, bringing on the most appropriate talent that has resulted in significantly higher costs during the year,” the filing notes.
According to the filing, Dunzo has received additional funding of Rs 205 crore from existing and new investors subsequent to the balance sheet date.
In December, the Bengaluru-based startup closed a growth round, raising Rs 27.5 crore ($3.7 million in exchange rates at that time) from returning investor Alteria Capital. It involved a mix of debt and equity components.
Prior to that, in September, Dunzo had raised $16 million (Rs 117.33 crore as per exchange rates then) from returning investors Google and Lightstone. Each investor put $8 million in the growth round, which was the first tranche for a $27.9 million Series E round.
As of June 2020, Dunzo was valued at $200 million.
Founded in 2015 by Kabeer Biswas, Ankur Aggarwal, Dalvir Suri and Mukund Jha, it offers hyperlocal delivery services to various e-commerce businesses as well as courier services. It also operates a bike taxi service in Gurugram.