Challenges, Losses, and Pivot

Dunzo faced challenges with high costs, particularly rent, inventory, and delivery rider expenses associated with dark stores. The pivot to grocery delivery did not yield desired results. Late entry into the market, competition, and lack of brand recognition among non-Bengalurians further hindered Dunzo's growth. Massive discounts and expensive advertising campaigns during the IPL were unsustainable. As a result, Dunzo incurred massive losses, far exceeding its revenue, leading to concerns about its financial stability. However, Dunzo remains optimistic, pivoting again to focus on logistics through its B2B vertical, named Dunzo Merchant Services, shutting down many dark stores, and streamlining its team to achieve profitability in the near future.