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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Startups are defined by one of two things: Breakneck pace of growth or a sweet bottomline. While Dunzo may be trying hard, it is fumbling at both.
Editor's note: Three years. That’s the time Kabeer Biswas, co-founder and CEO of Dunzo, sees the hyperlocal logistics company taking to stop relying on external capital and start making money on its own. Overly optimistic, from a quick look at the numbers. The latest financial statement, for the fiscal year ended 31 March 2019, and a valuation report dated 20 March show losses ballooning to Rs 332.4 crore in fiscal 2019-20, up from Rs 168 crore in 2018-19. That’s almost a crore a day. The report puts outstanding losses at nearly Rs 540 crore as per annualized figures. The filings also show Dunzo’s annualized expenditure during 2019-20 adding up to Rs 407.6 crore, a 2.3x rise from Rs 172 crore in 2018-19. That’s some cash burn, right there. The Bengaluru-headquartered company, though, is not short on recall. In the six years of its existence, it has managed to develop quite a fan base in the city of its birth. Almost anyone you run into in the traffic-snarled city talks about ‘dunzoing’ stuff—from cigarettes to contraceptives, beer to biryani. Other than the Karnataka …
Startups are defined by one of two things: Breakneck pace of growth or a sweet bottomline. While Dunzo may be trying hard, it is fumbling at both.
Editor's note: Three years. That’s the time Kabeer Biswas, co-founder and CEO of Dunzo, sees the hyperlocal logistics company taking to stop relying on external capital and start making money on its own. Overly optimistic, from a quick look at the numbers. The latest financial statement, for the fiscal year ended 31 March 2019, and a valuation report dated 20 March show losses ballooning to Rs 332.4 crore in fiscal 2019-20, up from Rs 168 crore in 2018-19. That’s almost a crore a day. The report puts outstanding losses at nearly Rs 540 crore as per annualized figures. The filings also show Dunzo’s annualized expenditure during 2019-20 adding up to Rs 407.6 crore, a 2.3x rise from Rs 172 crore in 2018-19. That’s some cash burn, right there. The Bengaluru-headquartered company, though, is not short on recall. In the six years of its existence, it has managed to develop quite a fan base in the city of its birth. Almost anyone you run into in the traffic-snarled city talks about ‘dunzoing’ stuff—from cigarettes to contraceptives, beer to biryani. Other than the Karnataka …
In less than two years, the instant delivery startup that puts quality above all else has attracted marquee VC investors, earning a valuation of $255 million. How far the niche bet will take it is anybody’s guess.
A churn in venture capital collides with the fear of missing the AI wave, while the Ajay Singh-led airline’s recurring crises raise deeper questions.
Pricing constraints and uncertain daily-use demand cast doubt on instant help’s ability to replicate quick commerce.
In less than two years, the instant delivery startup that puts quality above all else has attracted marquee VC investors, earning a valuation of $255 million. How far the niche bet will take it is anybody’s guess.
A churn in venture capital collides with the fear of missing the AI wave, while the Ajay Singh-led airline’s recurring crises raise deeper questions.
Pricing constraints and uncertain daily-use demand cast doubt on instant help’s ability to replicate quick commerce.
