Struggling quick-commerce startup Dunzo has opted to migrate its employee accounts from Google Workspace to Zoho Workspace in a cost-cutting move.
This transition is expected to result in a reduction of costs by at least one-third for Dunzo. Google Workspace’s enterprise plan is priced at around Rs 1,600 per user monthly, while Zoho offers similar services at a fraction of that cost, charging Rs 489.
A spokesperson from Dunzo emphasized that the migration was a routine business decision, and any initial challenges faced during the transition have been resolved.
The move comes amidst financial challenges for Dunzo, as its auditor Deloitte expressed concerns about the company’s status as a ‘going concern’ due to a significant increase in net loss to Rs 1,802 crore in FY23, marking a 288% rise from the previous year.
The term ‘going concern’ in accounting denotes an entity’s ability to sustain operations without facing bankruptcy in the foreseeable future. Dunzo has been implementing various measures to stabilize its operations, including the exit of a Reliance executive from its board, the departure of co-founder Dalvir Suri, reduction of headcount, and letting go of its Bengaluru office.
Despite these challenges, the company is actively working to navigate its financial difficulties and ensure its viability in the competitive quick-commerce sector.
