According to Moneycontrol, citing sources, the company's Google Workspace access, which encompasses Gmail, Meet, Sites, Calendar, AppSheet and many more applications, was suspended overnight due to nonpayment to the cloud consultant.

This move is expected to lower costs by at least a third for the cash-strapped company.

The report also mentioned that the sudden suspension of Google Workspace resulted in the loss of people's email history, including external emails, ongoing conversations with vendors, planning documents (which contained quarterly plans), sprint plans and others.

The company also confirmed the development.

"This migration is just a regular business decision. There were some initial teething issues for the first couple of days, but all of these have been ironed out now," the company spokesperson was quoted as saying.

According to the company website, Google, one of the biggest investors in Dunzo, charges a minimum of Rs 1,600 per user every month for its enterprise plan offerings. However, Zoho offers the same arrangement for only Rs 489 per user per month.

The move to Zoho also comes at a time when Dunzo has been reducing its workforce as it prepares to be much smaller in scale.

Earlier this month, Dunzo posted a loss of Rs 1,800 crore in FY23, a 288 per cent increase from the previous year.

The company has also been hit by the departure of several top-level executives, including co-founders and its finance head, as well as delays in salaries of several employees.