Zepto FY24 results: Revenue doubled to Rs 4,454 crore from Rs 2,026 crore in FY23

Express commerce company Zepto saw a significant increase in revenue. It registered a staggering increase of around 120%, with revenue rising from Rs 2,026 crore in FY23 to Rs 4,455 crore in FY24. This growth is attributed to the growing trend of customers opting for 10-minute delivery.

Zepto saw strong revenue growth, which helped offset its losses in part thanks to improved margins. The company’s net loss decreased by 2%, totaling to Rs 1,248.64 crore in FY24 compared to Rs 1,271.84 crore in FY23. As a result, loss as a percentage of revenue declined significantly from 63% in FY23 to 28% in FY24.

Zepto invested heavily 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 significant increase, the company has managed to reduce its losses significantly Slightly, by around 2%, from Rs 1,272 crore in FY23 to Rs 1,249 crore in FY24.

“Our accounting revenues grew by 120% year-on-year from…Even with the 120% growth, our absolute losses decreased year-on-year with VAT as a percentage of revenue improving from -63% in FY23 to -28,” the President said. CEO and co-founder Aadit Palicha on LinkedIn: “We expect this growth momentum to continue with a clear path to PAT profitability in the near term.”

Zepto’s largest expenditure in the financial year was on merchandise purchases, totaling Rs 3,449.83 crore. This represents an increase of 77% over the previous year’s expenditure of Rs 1,953.03 crore.

Staff Expenses: Zepto has allocated Rs 426.30 crore towards its workforce, which shows an increase of 62% over the previous financial year’s expenditure of Rs 263.45 crore.

Storage cost: Total warehousing expenditure stood at Rs 492.65 crore, reflecting an increase of 43% over the previous financial year’s expenditure of Rs 344.79 crore.

Advertising Expenditure: Zepto invested Rs 303.55 crore in advertising and promotion in FY24, which represents a 41% increase over the previous financial year’s expenditure of Rs 215.82 crore.

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto Datalabs offers express, 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 tight competition. In terms of revenue, Zepto outperforms both competitors.

In FY24, Blinkit had 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 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

Balesha expressed optimism about the possibility of an initial public offering (IPO) in 2025. In November, Zepto secured $350 million in fresh funding from prominent local investors such as HNWIs, leading financial institutions and family offices in a round backed by Motilal Oswal. Private Wealth Division The funding round aims to boost local ownership in anticipation of a potential initial public offering in 2025, according to Palesha.

“This is our ambition… Of course, the capital markets may change, but for now we are optimistic that if the business continues to perform as well, we will go public in calendar 2025,” Balesha told news agency PTI.
It is worth noting that Zepto’s competitors Zomato, which runs Blinkit, and Swiggy, which runs Instamart, are listed on stock exchanges.