Quick commerce major Zepto experienced a substantial surge in revenue. It reported an impressive increase of approximately 120%, with revenues climbing 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 10-minute deliveries.
Zepto saw strong revenue growth, which helped to partially offset its losses thanks to improved 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 revenue decreased significantly from 63% in FY23 to 28% in FY24.
Zepto significantly invested in marketing, materials, and other expenses, leading to a 72% rise 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 approximately 2%, from Rs 1,272 crore in FY23 to Rs 1,249 core in FY24.
“Our accounting revenue has grown 120% year-on-year from…Even with 120 percent growth, our absolute losses came down year-on-year with PAT as a percentage of revenue improving from -63% in FY23 to -28% in FY24. We expect to continue this growth momentum with a clear path to PAT profitability in the near term,” CEO and co-founder Aadit Palicha said on LinkedIn.
Zepto’s largest expenditure in the fiscal year was on the purchase of goods, totaling Rs 3,449.83 Cr. This marked a 77% increase from the previous year’s expenditure of Rs 1,953.03 Cr.
Employee Expenses: Zepto allocated Rs 426.30 crore towards its workforce, showing a 62% increase from the previous fiscal year’s expenditure of Rs 263.45 crore.
Warehousing Cost: Expenditure for warehousing totaled Rs 492.65 crore, reflecting a 43% increase from the previous fiscal year’s spending of Rs 344.79 crore.
Ad Expenses: Zepto invested Rs 303.55 Cr in advertising and promotion in FY24, representing a 41% increase from the previous fiscal year’s expenditure of Rs 215.82 crore.
Established in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto Datalabs offers speedy 10-minute delivery services for various products including groceries, packaged foods, ready-to-eat meals, daily essentials, and electronics.
In 2024, Zepto embarked on a successful fundraising journey, securing a total of over $1.3 billion in 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 the top three quick commerce companies in India, competing with Zomato’s Blinkit and Swiggy Instamart. While Blinkit leads the market, Swiggy Instamart and Zepto are in a close competition. In terms of revenue, Zepto surpasses both competitors.
In the fiscal year FY24, Blinkit generated revenue of Rs 2,301 crore, Swiggy Instamart had total sales of Rs 1,100 crore, and Zepto outperformed with a top line of Rs 4,455 crore.
These three companies face competition from Flipkart Minutes, Tata BigBasket, and are gearing up for the entry of industry giants like Amazon.
Zepto’s IPO plans
Palicha expressed optimism regarding the potential for an initial public offering (IPO) in 2025. In November, Zepto secured $350 million in fresh funding from prominent domestic investors such as Indian HNIs, leading financial institutions, and family offices in a round championed by Motilal Oswal’s Private Wealth division. The funding round was aimed at bolstering domestic ownership in anticipation of a potential IPO in 2025, according to Palicha.
Palicha told news agency PTI: “That’s our ambition…of course, capital markets may change, but for now we’re optimistic if the business continues to perform as well, that we will go public in calendar 2025.”
It is worth noting that Zepto’s rivals, Zomato, which operates Blinkit, and Swiggy, which runs Instamart, are listed on the stock exchanges.
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