BENGALURU : Hyperlocal delivery startup Dunzo has reported a net loss of ₹168.9 crore in FY19, an increase of nearly eight times from the loss of ₹21.9 crore in 2017-18, according to documents sourced from the Registrar of Companies (RoC).
The four-year-old startup’s operational revenue rose five times from ₹15.81 lakh in FY18 to ₹76.59 lakh in FY19. Total revenue for FY19 was at ₹ 3.5 crore, wherein around ₹ 2.8 crore was generated only from interest from fixed deposits and sale of mutual funds, filings show.
Its expenses also increased by around eight times to ₹172.5 crore in FY19, primarily led by an increase in “other expenses”, which stood at ₹126.2 crore.
Dunzo, founded in 2015 by Kabeer Biswas, Ankur Aggarwal, Mukund Jha and Dalvir Suri, is an online platform that allow users to buy products from nearby shops and get them delivered to their doorstep.
The hyperlocal delivery segment recently turned competitive after food delivery platform Swiggy ventured into the space through the Swiggy Stores feature.
Dunzo’s “fair valuation” was pegged at around ₹400 crore ($56.4 million) in September by auditors, according to the RoC filing. This is significantly lower than the $200 million post-money valuation, when Dunzo raised $45 million in a Series D round this month.
The report said the estimated fair value per dilutive equity share of Dunzo Digital Pvt. Ltd as on 31 July was ₹42,470. The huge difference between the valuation mentioned in the auditor’s report and the market valuation in the last funding round is a “premium” that Dunzo’s current investors have agreed upon, said several valuation experts Mint spoke with.
“Dunzo investors seemed to have paid a huge premium in its last round. This is the fair market value of that (Series D) investment…when they (Google and other Dunzo investors) bought Dunzo’s share. Investors usually pay a premium, which is more than the fair market value established by an auditor…this fair value is usually the minimum asking valuation when startups go for a fund raise,” said a lawyer who manages mergers and acquisitions in the startup segment, seeking anonymity.
