Dunzo may not be able to continue as a going concern: Deloitte

Troubled quick commerce of platform, Dunzo’s auditor Deloitte has expressed doubt over the company’s ability to continue as a going concern. Deloitte’s comments were appended with regulatory filings for FY23 which showed that Dunzo’s losses in FY23 has shot up by 288% to Rs 1,802 crore.

Deloitte said that Dunzo’s current liabilities exceeded its current assets by Rs 325.8 crore primarily because of significant high operational costs for building customer base.

Since Dunzo’s total liabilities amount to more than its total assets, the company will be unable to repay its creditors in a bankruptcy event. “…the group’s ability to continue as a going concern is significantly dependent on the availability of additional funding, and improvement in business operations.