Dunzo's FY23 Loss Jumps To Rs 1,800 Crore, Revenue At Rs 226 Crore

However, Dunzo's management expects operations to continue. "Through revenue growth projected in the subsequent periods and measures undertaken by the management to reduce its costs, it would result in improvements in business operations," it said in response to auditors.

In the filings, the management has also stated that there are "approved business plans, cash flow forecasts, availability of cash and bank balance, plans to secure debt funding arrangements in the next financial year, and discussions for further infusion of equity by existing and potential investors," that will help mitigate the auditor's "material uncertainty" on Dunzo's ability to continue operating.

In response to BQ Prime's queries, Dunzo said FY23 was "about growing sustainably by strengthening our core businesses."

"Overall platform gross merchandise value crossed Rs 1,500 crore representing the true scale of our business. Crucially, our business burn is now neutral as we successfully implemented cost cuts and more importantly revamped our store network for Dunzo Daily, moving from a dark store model to a partner store model," a spokesperson for the company said.

"Our logistics/B2B vertical, which reached maturity this year continued to be a strong revenue generator, growing by over 128% while becoming gross margin neutral. There’s a lot to be excited about - from our growing presence on the ONDC network, our strong logistics business, to the new avatar of Dunzo Daily. We are aiming to hit corporate level profitability in 12 months," the spokesperson said.

Dunzo is facing a number of headwinds, having seen five board members, including two co-founders resigning, leaving only three members. On top of that, salaries have been delayed for a large number of employees as it struggles to close a funding round to sustain its operations.