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Report On Dunzo: Sankalp Sharma 22BSP2495 Amisha Pokharna 22BSP2397 Saikrishnan R 22BSP2432 Anjali Vishwakarma 22BSP2497

Dunzo is an Indian company that delivers groceries and other essential items. It was founded in 2014 in Bangalore. Before COVID, Dunzo struggled with low demand and incurred losses as customers preferred shopping in stores. During COVID, demand for Dunzo's services increased significantly as people stayed home more. This helped Dunzo become profitable for the first time. After COVID, Dunzo has maintained high demand levels and a steady user base as delivery services became more integrated into customer habits.

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52 views15 pages

Report On Dunzo: Sankalp Sharma 22BSP2495 Amisha Pokharna 22BSP2397 Saikrishnan R 22BSP2432 Anjali Vishwakarma 22BSP2497

Dunzo is an Indian company that delivers groceries and other essential items. It was founded in 2014 in Bangalore. Before COVID, Dunzo struggled with low demand and incurred losses as customers preferred shopping in stores. During COVID, demand for Dunzo's services increased significantly as people stayed home more. This helped Dunzo become profitable for the first time. After COVID, Dunzo has maintained high demand levels and a steady user base as delivery services became more integrated into customer habits.

Uploaded by

arkaprava paul
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Report on Dunzo

1. Sankalp Sharma 22BSP2495


2. Amisha Pokharna 22BSP2397
3. Saikrishnan R 22BSP2432
4. Anjali Vishwakarma 22BSP2497
INTRODUCTION
• Dunzo is an Indian company that delivers groceries and essentials, fruits and vegetables, meat, pet supplies,
food, and medicines in major cities. It also has a separate service to pick up and deliver packages within the
same city. 
•  Dunzo is headquartered in Bangalore and was founded in 2014 by Kabeer Biswas.
• Dunzo also partnered with FMCG major PepsiCo to deliver its snacks brands such as Lay’s and Kurkure to
customers’ doorsteps in Bengaluru amid the lockdown due to the Covid-19 pandemic in India in keeping with
Pepsico's ‘Direct-to-Customer’Dunzo has raised a total funding of $368.4 Million in over 16 rounds of funding.
• Dunzo raised $240 mn from a funding round led by Reliance Retail  Reliance Retail also confirmed that it will
own 25.8% stakes with it’s $240 mn.
• Dunzo Daily is currently growing 100% month-on-month, and is presently relying on its strong supply chain to
streamline its operations 
Pre covid
• In 2017 to2019 there was a decrease in the demand of the Dunzo and
company reduce the price.
• Company bared the losses as the supply of the service was also decreasing
as it was new in the marketing and had multiple competitors.
• The people around did not encouraged the online application to purchase
the daily necessities as they believe to buy it from supermarket and local
stores.
Leftward Shift Of Demand Curve
Price Elasticity Curve for 2017-19
• As the price decreased and the company was in loss and revenue
decreased, the company arranged the funds from different sources.
• Also there are many others substitute available in the market but as price
decreased, people demand for the service and there was increase in
demand.
• Hence the demand is relatively elastic.
Income Elasticity Curve For 2017-19
During Covid
During Covid
• As Covid-19 makes app-based concierge services a part of our daily lives, Dunzo, the largest
player in the segment, achieved gross margin profitability for the first time in 2020, and also
doubled its annual active user base from 2.7 to 5.1 million from 2019 to 2020
• As people spent more time indoors, services such as Dunzo that help buy products from any store
of one’s choice and picks up and drops from any store of one’s choice and picks up and drop
parcels from one point to another-came in handy.
Dunzo not just gianed users briskly in 2020, but order values grew, and retention also improved.
The gross transaction values for the app more than doubled from 2019 to 2020 growing 105%
and there was a 14 percentage points increase in quarterly user retention in Oct-Dec 2020
compared to the same quarter in 2019, Dunzo said.
Income Elasticity during covid
POST COVID
• The Gross sales value increased by 64% in FY21 to organic demand and the behavioural shift in
consumer purchasing habits during 2nd half of 2021.
• Dunzo recieves money from delivery charges which ranges from rs.10 to rs.60 depending upon the
distance of delivery. It also receives a predetermined commission from partner’s store. This price
hasn’t changed since covid period.
• The demand of the customers has been consistent after covid and so was the supply.
• Thus there is same increase in both the demand and supply of Dunzo with no change in price.
Rightward Shift in both Demand and Supply
Price Elasticity of Post Covid
• The quantity demanded is higher than the price change.
• If demand increases in a certain location increases,
they charge more money. Also if weather conditions
are poor, they increase delivery charges.
• Also this type of industry is a necessity, thus Ep<1
Income Elasticity Of Post Covid
• Since this is a necessity, so if the person’s income increases he will be
able to demand more. Also if his income decreases, there will be decrease
in demand.
• Hence, Ey<1.
Conclusion
• Pre-covid Dunzo lost a lot of money during . However, the fact that the company lost 222X more
money than it’s operating income is mind-boggling. The Google-backed firm has recorded a loss of
Rs 169 crore in FY19 for a meagre revenue of Rs 76.6 lakhs, it poured in total expenses amounting
to Rs 172.45 crore in its business during FY19
• During covid, under Biswas’ leadership, Dunzo has turned the covid crisis into an opportunity. The
Bengaluru-based firm doubled its active userbase from 2.7 million to 5.1 million from 2019 to
2020. With a gross merchandise value (GMV) growth of 2X over the past year, Dunzo is now an
about $100 million annualized GMV business.
• Post covid, Dunzo is still going strong against it’s competition and still maintaining a good user
base of 30,000 monthly active users in Bengaluru who employ its mobile app for an assortment of
errands.
Bibliography
• https://
timesofindia.indiatimes.com/business/startups/companies/unlike-peers-du
nzo-is-still-up-and-running/articleshow/60742636.cms
• https://timesofindia.indiatimes.com/business/india-business/dunzo-active-
user-numbers-double-in-2020/articleshow/81337475.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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