In a bid to cut costs by a third, homegrown e-commerce start-up Dunzo has migrated all its employee accounts from Google to Zoho Workspace, PTI reported. Google Workspace costs around Rs 1,600 per user per month under the Enterprise plan, while Zoho charges a fraction of that for a similar offering at Rs 489.
A Dunzo spokesperson commented on the matter, saying, “This migration is just a routine business decision. There were some teething problems for the first few days, but these have now all been resolved.” During a regulatory filing, company auditor Deloitte raised doubts on the company after its net loss widened to Rs 1,802 crore in FY23, a rise of 288 per cent over the previous year.
In accounting terms, entities operating as ‘going concerns’ have sufficient resources to continue making money and will not go bankrupt in the near future.
Zoho’s move comes at a time when Dunzo is reducing its workforce as it prepares to go much smaller in scale. From more than 1,300 employees in March, the company is now aiming to build a workforce that doesn’t exceed 200 in total. Dunzo’s move to scale down operations comes at a time when its net loss widened to Rs 1,802 crore in FY23, 288 per cent higher than the previous year. The mounting losses also led the company’s auditor Deloitte to doubt Dunzo’s ability to continue as a going concern, as previously reported.
Following the exit of a Reliance executive from the board and the departure of co-founder Dalvir Suri and others, there have been consistent and strong efforts to steady the ship. The company had earlier let go of its Bengaluru office, halved its workforce and delayed salaries for several months, leading to employees quitting their jobs.
Read this also Edtech start-up Physicswala may lay off 120 employees