Quick commerce unicorn, Zepto saw its FY24 consolidated revenues surge by 120% to Rs 4,454, up from Rs 2,024 crore in FY23, driven by increased customer demand and operational efficiencies.
Despite the growth, net loss for the year slightly narrowed to Rs 1,249 crore, compared to Rs 1,272 crore in FY23. However, Zepto reduced its loss as a percentage of revenue from -63% in FY23 to -28% in FY24, reflecting a strong focus on cost optimisation.
Zepto’s total expenses for FY24 rose by 72% to Rs 5,747.21 crore, aligning with its ambitious expansion plans. Meanwhile, the company’s gross merchandise value (GMV) surpassed $1 billion, signaling robust business momentum.
Around 75% of Zepto’s stores achieved Ebitda positivity as of May 2024, demonstrating operational efficiency. The company remains optimistic about sustaining its growth trajectory and achieving profitability in the near term.
In a LinkedIn post, CEO Aadit Palicha expressed confidence in the company’s future, stating, “We are committed to maintaining our growth momentum and are well-positioned to achieve profitability soon”. Palicha has earlier said that the company is to go public in 2025.
Zepto has raised $1.36 billion this year, the highest among all startups, from investors such as Glade Brook Capital, Nexus Venture Partners, Lightspeed India, Motilal Oswal Private Wealth, and Narotam Sekhsaria Family Office, among others, pushing its valuation up to $5 billion.
The company, which recently shifted base to Bengaluru from Mumbai, has managed to capture the second-highest market share among quick-commerce apps at 29%, according to a report by Motilal Oswal. Zomato-backed Blinkit leads the market with a 46% share while Swiggy Instamart lags Zepto with a 25% share.
Recently, Palicha announced that the company is launching Zepto Cafe, its 10-minute food delivery unit, as a separate app. The unit is already clocking 30,000 orders per day and Zepto is launching more than 100 cafes a month. To compete, Blinkit is reportedly set to launch “Bistro”, its quick food delivery service. Swiggy Instamart also houses a similar service called Cafe.