Quick commerce firm Dunzo has moved all employee accounts from Google to Zoho Workplace in yet another attempt to cut expenses. This is anticipated to reduce expenses for the struggling company by a minimum of thirty percent.
Google Workspace is available for approximately Rs 1,600 per user per month with the enterprise plan, whereas Zoho offers similar services for a fraction of that price at Rs 489.
For Dunzo, which has been having cash flow problems and is fighting to survive since July, cutting expenses is an essential first step. Since then, in addition to taking other steps to stabilise operations, the business has had to postpone paying salaries, terminate roughly 500 employees, and give up its Bengaluru office space, according to Moneycontrol.
In accounting terms, "going concern" firms are those that have enough cash on hand to generate revenue going forward and won't file for bankruptcy anytime soon.
There have been persistent and strong attempts to steady the ship at Dunzo, following the resignation of co-founder Dalvir Suri and several other Reliance executives from the company's board.
For employees, Google Workspace—which includes Gmail, Meet, Sites, Calendar, AppSheet, and many other applications—is essential since it synchronises schedules and builds a database with all company-related data.
“Dunzo's Google Workspace access (email, calendars, drive etc) was revoked overnight due to nonpayment to the cloud consultant,” a source told Moneycontrol.
It was earlier reported that Dunzo is in plans to settle the dues of its former employees in the next three months while it is regularising salaries for its current employees.