Struggling quick-commerce startup Dunzo has shifted all its employee accounts from Google to Zoho Workspace to reduce costs by at least a third, news agency PTI reported.
Google Workspace’s enterprise plan costs around Rs 1,600 per user per month, while Zoho offers similar services at a fraction of the price, charging Rs 489.
According to the report, a spokesperson from Dunzo commented on the move, stating that this migration is a routine business decision. There were some initial challenges in the first couple of days, but these have now been resolved.
In a regulatory filing, Dunzo’s auditor, Deloitte, expressed concerns about the company’s status as a going concern, citing a staggering increase in net loss to Rs 1,802 crore in FY23, a 288 per cent rise from the previous year.
In accounting terms, entities operating as a ‘going concern’ have adequate resources to sustain profitability and are not expected to go bankrupt in the foreseeable future.
Following the departure of a Reliance executive from its board and the exit of co-founder Dalvir Suri and others, concerted efforts have been made to stabilise the company.
Dunzo had previously downsized its Bengaluru office, reduced its workforce by half, and faced delays in salary payments, resulting in employee departures.