Dunzo Switches Employee Accounts To Zoho Workspace From Google To Pare Costs

Google workspace is priced at about Rs 1,600 per user each month under the enterprise plan, while Zoho charges a portion of that at Rs 489 for similar offerings

This move to Zoho also comes at a time when Dunzo has been downsizing its workforce as it prepares to be much smaller in scale.

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In a bid to slash costs by one-third, home-grown e-commerce start-up Dunzo has migrated all its employee accounts to Zoho workspace from Google, the PTI reported. Google workspace is priced at about Rs 1,600 per user each month under the enterprise plan, while Zoho charges a portion of that at Rs 489 for similar offerings.

A Dunzo spokesperson commented on the matter, saying, "This migration is just a regular business decision. There were some initial teething issues for the first couple of days, but all of these have been ironed out now." The company's auditor Deloitte during the regulatory filing casted a doubt on the company being a going concern after net loss ballooned to Rs 1,802 crore in FY23, which is a 288 per cent increase from the previous year.

In accounting terms, entities functioning as a 'going concern' have sufficient resources to continue making money and would not go bankrupt in the foreseeable future.

This move to Zoho also comes at a time when Dunzo has been downsizing its workforce as it prepares to be much smaller in scale. From over 1,300 employees in March, the company is now aiming to have a workforce that will not exceed 200 in total. Dunzo's move to scale down operations comes at a time when its net loss ballooned to Rs 1,802 crore in FY23, a 288 percent increase from the previous year. The mounting losses also prompted Deloitte, the company’s auditor, to cast doubts over Dunzo’s ability to continue as a going concern, as reported earlier.

After the exit of a Reliance executive from its board and the departure of co-founder Dalvir Suri and others, there have been consistent and robust efforts to steady the ship.  The company had previously let go of its Bengaluru office, halved its headcount and delayed salaries for months, leading to employee departures as well.