Aadit Palicha-led quick-commerce unicorn Zepto has reported an impressive 120% surge in revenue for the financial year 2024 (FY24), with earnings rising from INR 2,025 crore in FY23 to INR 4,454 crore. This substantial growth highlights a shift in consumer preferences towards the convenience of 10-minute deliveries over traditional e-commerce platforms and local Kirana stores.
“Our accounting revenue has grown 120% year-on-year from INR 2,025 crore in FY23 to INR 4,454 crore in FY24. Even with this growth, our absolute losses reduced year-on-year, with PAT as a percentage of revenue improving from -63% in FY23 to -28% in FY24,” Palicha stated on LinkedIn. Despite the revenue increase, the company’s growth has been accompanied by a significant rise in expenses. Zepto’s total costs soared by 72%, reaching INR 5,747 crore in FY24 compared to INR 3,350 crore in FY23. A substantial portion of this increase was driven by procurement, which accounted for 60% of the total expenditure. The company spent INR 3,481 crore on procurement alone, an 87% jump from the previous year.
The company also saw an increase in employee benefit expenses, which climbed to INR 426 crore, including INR 74 crore allocated to non-cash Employee Stock Ownership Plans (ESOPs). Additional investments were made in warehousing and logistics, with warehouse costs rising by 43% to INR 493 crore and delivery expenses reaching INR 580 crore. Marketing efforts contributed significantly to the expenditure, with Zepto spending INR 303 crore to enhance brand visibility. Technology expenses rose to INR 116 crore as the company worked to optimize its digital infrastructure to meet growing demand.
Despite these rising costs, Zepto managed to reduce its net losses by 2%, bringing them down to INR 1,248.64 crore in FY24 from INR 1,271.84 crore in FY23. Palicha emphasized the company’s strong governance practices, highlighting achievements such as completing a full statutory audit by a Big 4 firm and implementing advanced financial systems, including SAP FICO integration and automated revenue-to-cash reconciliation. These steps underscore Zepto’s commitment to operational excellence and a governance-focused culture.
With a 29% share of India’s quick-commerce market, Zepto is positioned as the second-largest player in the sector, trailing Zomato-owned Blinkit, which holds 46%, and ahead of Swiggy Instamart at 25%. Notably, Zepto outperformed both competitors in revenue generation for FY24, with Blinkit and Swiggy Instamart reporting INR 2,301 crore and INR 1,100 crore, respectively. This highlights Zepto’s competitive edge in capturing market share and scaling its operations effectively.
In addition to its core quick-commerce operations, Zepto is expanding its presence with Zepto Café, its dedicated beverage and snack delivery service. The company is set to launch a standalone app for Zepto Café, further diversifying its offerings. Zepto Café has been experiencing rapid growth, opening over 100 new locations each month and processing more than 30,000 daily orders. This initiative aligns with Zepto’s broader strategy to establish a robust market presence and diversify its revenue streams.
Zepto’s impressive growth trajectory, coupled with its focus on profitability and expansion, highlights its evolving role as a leading player in India’s quick-commerce sector. With continued investments in technology, governance, and market presence, the company is poised to strengthen its position and achieve sustainable growth in the coming years.
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