Quick commerce startup Dunzo, known for its innovative delivery services, has recently made a significant move to reduce operational costs. The company has migrated all employee accounts from Google Workspace to Zoho Workplace, aiming to slash expenses by a substantial margin. This strategic decision comes as Dunzo faces financial challenges and endeavors to navigate through a turbulent period.
In a bid to bolster its financial health, Dunzo has undertaken a series of cost-cutting measures, with the latest being the migration of employee accounts from Google Workspace to Zoho Workplace. This transition is expected to result in a cost reduction of at least one-third for the beleaguered company.
Google, a major investor in Dunzo, charges a substantial fee of at least Rs 1,600 per user per month for its enterprise plan, encompassing a suite of applications such as Gmail, Meet, Sites, Calendar, and more. In contrast, Zoho provides a similar arrangement for only Rs 489, offering significant savings for Dunzo in its quest to streamline expenditures.
Dunzo has been grappling with financial challenges since July, necessitating a proactive approach to stay afloat. The company has faced cash flow issues, leading to delayed salaries, layoffs of over 500 employees, and relinquishment of office space in Bengaluru. Amid these challenges, Dunzo’s move to Zoho is a strategic step to address the financial strain it has been experiencing.
Google Workspace plays a pivotal role for Dunzo’s employees, synchronizing schedules and creating a comprehensive database of company-related information. However, the sudden revocation of Dunzo’s access to Google Workspace, including email, calendars, and drive, due to nonpayment to a cloud consultant, posed a significant challenge. Employees experienced the loss of email history, ongoing conversations with vendors, and critical planning documents stored on Google Drive.
This shift to Zoho not only addresses the immediate cost concerns for Dunzo but also underscores the importance of financial prudence in the current business landscape. The move highlights the company’s commitment to overcoming financial hurdles and ensuring the continuity of its operations.