Zepto, India’s fastest q-commerce company, reported stellar operational performance in FY24 with strong financial performance. The company’s revenue, meanwhile, almost doubled to Rs 4,455 crore from Rs 2,026 crore in FY23, which translated to an incredible 120% increase year-on-year. “Much of that growth was fueled by demand for ultra-fast 10-minute deliveries from consumers. Zepto also managed to narrow its net losses by 2% to Rs 1,248.64 crore in FY24 from Rs 1,271.84 crore a year ago, despite aggressive investments in the areas of operations and marketing.
The enhanced operational efficiency also proved beneficial in ameliorating losses. The company’s loss as a percentage of revenue saw a sharp drop, declining from 63% in FY23 to 28% in FY24. CEO and co-founder Aadit Palicha called attention to this progress in a LinkedIn post, saying, “Even at 120% growth, our absolute losses reduced yoy with PAT as a percentage of revenue improving significantly. We expect to build on this growth momentum with a clear path to profitability over the near term.”
Expenditure Breakdown
Zepto’s overall expenditure increased 72% from Rs 3,350 crore in FY23 to Rs 5,747 crore in FY24. So what did the company spend the most on? The single biggest outlay was on the purchase of goods, worth Rs 3,449.83 crore, an increase of 77% from Rs 1,953.03 crore in FY23. Employee costs also surged 62% to Rs 426.30 crore, against Rs 263.45 crore a year ago. In FY24, warehousing expenses soared at Rs 492.65 crore, up 43 percent from Rs 344.79 crore. The costs of advertising and promotion increased by 41% to Rs 303.55 crore from Rs 215.82 crore in FY23.
Industry Leadership
Founded by Aadit Palicha and Kaivalya Vohra in 2021, Zepto has reached a commanding position in the quick trade arena by providing 10-minute delivery of ingredients, ready-made meals, regular essentials, and electronics. Zepto’s closest rivals fell far behind, generating revenues of Rs 4,455 crore in FY24. Zomato’s Blinkit had revenue of Rs 2,301 crore, while Swiggy Instamart had sales of Rs 1,100 crore. It positions Zepto as an unequivocal market leader within the realm of quick commerce in India.
Although it faces stiff competition from companies like Blinkit and Swiggy Instamart, as well as threats from the likes of Flipkart Minutes and Tata BigBasket, Zepto is steadily gaining market share. The company’s strong revenue performance and customer-centric approach have kept it ahead of its competitors.
Fundraising Success
Zepto’s financial performance in FY24 was aided by fundraising efforts. In total, the company secured 2024 funding of over $1.3 billion across three rounds, including $665 million in June, $340 million in August and a further $350 million in November. The new round was led by the Private Wealth division of Motilal Oswal and saw participation from high-net-worth individuals, family offices, and financial institutions. It came in a bid to boost domestic ownership ahead of a planned IPO in 2025.
IPO Aspirations
Aadit Palicha said he was confident that Zepto was ready to list publicly, adding, “If the business keeps doing well, we are hopeful that we can go public by 2025.” The IPO plans indicate Zepto’s aim to cement its market leadership and tap into its growing revenue and operational efficiencies.
Future Prospects
With its cutting-edge business model, growing revenue, and a clear route to profitability, Zepto is in a strong position for sustained success. Its focus on rapid delivery, strategic investments, and effective cost management has helped the company outperform competitors and gain a significant share of India’s quick commerce market. While preparing for its IPO, Zepto continues to hold a strong position among an evolving set of fast delivery services that includes both legacy companies and new players.
In just three years, Zepto has transitioned from a startup to a key player in the industry sector and surveillance—due to its ability to overcome, evolve, and rapidly grow in response to market forces. As the company is preparing to go public and its revenues continue to grow, it is well-positioned to become a leader of the quick commerce landscape in India.
Ready to grow your business? Need instant Business Loan? or need Personal Loan?
We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates.
Apply Now and fuel your entrepreneurial journey today!!!!!
