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Fast trading major Zepto saw a substantial increase in revenue. It reported an impressive increase of around 120%, with revenue increasing from Rs 2,026 crore in FY23 to Rs 4,455 crore in FY24. This growth was attributed to the growing trend of customers opting for delivery in 10 minutes.
Zepto saw strong revenue growth, which helped partially offset its losses thanks to improving margins. The company’s net loss decreased by 2%, totaling Rs 1,248.64 crore in FY24 compared to Rs 1,271.84 crore in FY23. As a result, the loss as a percentage of the Revenue decreased significantly from 63% in FY23 to 28% in FY24.
Zepto invested significantly in marketing, materials and other expenses, resulting in a 72% increase in total expenses from Rs 3,350 crore in FY23 to Rs 5,747 crore in FY24. Despite this substantial increase , the company managed to reduce its losses slightly, by about 2%, from Rs 1,272 crore in FY23 to Rs 1,249 crore in FY23. 24.
“Our accounting revenue has grown 120% year-over-year since… Even with 120 percent growth, our absolute losses reduced year-over-year and PAT as a percentage of revenue improved from -63% in FY23 to -28.% in FY24. We look forward to continuing this growth momentum with a clear path to profitability for PAT in the near term,” CEO and Co-Founder Aadit Palicha said on LinkedIn.
Zepto’s biggest expenditure in the fiscal year was the purchase of goods, totaling Rs 3,449.83 Cr. This marked a 77% increase over the previous year’s expenditure of Rs 1,953.03 Cr.
Employee Expenses: Zepto allocated Rs 426.30 million to its workforce, showing a 62% increase over the previous fiscal year’s expenditure of Rs 263.45 million.
Warehousing Cost: Warehousing expenditure stood at Rs 492.65 crore, reflecting a 43% increase over the previous fiscal year’s expenditure of Rs 344.79 crore.
Advertising Expenses: Zepto spent Rs 303.55 crore on advertising and promotion in FY24, which is a 41% increase over the previous fiscal year’s expenditure of Rs 215.82 crore.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto Datalabs offers fast 10-minute delivery services for various products including groceries, packaged foods, ready-to-eat meals, daily necessities, and electronics.
In 2024, Zepto embarked on a successful fundraising journey, raising a total of over $1.3 billion across three rounds of funding. The company raised $665 million in June, followed by $340 million in August and an additional $350 million in November.
Zepto is one of India’s top three quick commerce companies and competes with Zomato’s Blinkit and Swiggy Instamart. While Blinkit leads the market, Swiggy Instamart and Zepto compete closely. In terms of revenue, Zepto surpasses both competitors.
In FY24, Blinkit generated revenue of Rs 2,301 crore, Swiggy Instamart had total sales of Rs 1,100 crore and Zepto was an outperformer with a top line of Rs 4,455 crore.
These three companies are facing competition from Flipkart Minutes and Tata BigBasket and are gearing up for the entry of industry giants like Amazon.
Zepto’s IPO plans
Palicha expressed optimism about the possibility of an initial public offering (IPO) in 2025. In November, Zepto raised $350 million in new funding from prominent domestic investors such as Indian HNIs, leading financial institutions and family offices in a round championed by Motilal Oswal . Private Assets Division. According to Palicha, the financing round was aimed at strengthening domestic ownership in anticipation of a possible initial public offering (IPO) in 2025.
Palicha told news agency PTI: “That is our ambition…of course, the capital markets may change, but for now we are optimistic, if the business continues to perform as well, we will go public in calendar 2025.”
It’s worth noting that Zepto’s rivals Zomato, which runs Blinkit, and Swiggy, which runs Instamart, are listed on stock exchanges.
