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Zepto FY24: Revenue Doubles to ₹4,455 Crore, Paving Path to Profitability

Zepto, the quick commerce unicorn, has made significant strides in FY24, with its revenue jumping a remarkable 120% to ₹4,455 crore, up from ₹2,026 crore in FY23. Despite being in a fiercely competitive space dominated by Blinkit and Swiggy Instamart, Zepto emerged as a leader in revenue terms, far ahead of Blinkit’s ₹2,301 crore and Swiggy Instamart’s ₹1,100 crore for the same period.

 Transforming Consumer Preferences

Zepto’s impressive growth can be attributed to a growing consumer base shifting their shopping habits from traditional kirana stores and conventional e-commerce platforms to 10-minute delivery services. This transition has fueled Zepto’s top-line growth, positioning it as a frontrunner in the quick commerce industry.

However, scaling at this pace came with its challenges. The company significantly ramped up spending on marketing, material costs, and operational enhancements. Consequently, total expenses increased by 72%, rising from ₹3,350 crore in FY23 to ₹5,747 crore in FY24. Despite these escalated costs, Zepto managed to narrow its losses slightly, reducing them by 2% from ₹1,272 crore in FY23 to ₹1,249 crore in FY24.

zepto-fy24

Key Financial Metrics and Operational Highlights

CEO and co-founder Aadit Palicha highlighted the company’s progress on LinkedIn, stating, “Our accounting revenue has grown 120% year-on-year. Even with this 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 are on a clear path to profitability in the near term.”

This growth trajectory reflects in Kiranakart Technologies Pvt Ltd’s filings. As the Indian entity licensing the Zepto brand name, Kiranakart handles consumer goods trading, logistics services, and advertisements on the Zepto platform. Essentially, Kiranakart Technologies forms the backbone of Zepto’s operations, supporting the platform’s smooth functioning through a network of partner entities.

 Competitive Landscape

The quick commerce sector in India is witnessing intense competition, with Zepto, Blinkit, and Swiggy Instamart vying for dominance. While Blinkit remains the market leader in terms of overall presence, Zepto has surged ahead in revenue. The three giants are also contending with players like Flipkart Minutes and Tata BigBasket, while bracing for potential disruption from Amazon’s anticipated entry into the space.

 Funding and Financial Stability

By the end of FY24, Zepto reported a cash and bank balance of ₹692 crore. Since then, it has further fortified its financial position by raising a staggering ₹11,475 crore ($1.35 billion) through back-to-back funding rounds within five months. These funds have bolstered Zepto’s operations and set the stage for its ambitious plans.

IPO and Future Plans

Zepto is preparing for its next big leap: transitioning its base back to India from Singapore and going public domestically. Goldman Sachs, Morgan Stanley, and Axis Capital have already been hired by the business to oversee its $500 million initial public offering (IPO), which is scheduled for 2025. This move underscores Zepto’s confidence in its growth potential and commitment to becoming a publicly traded entity in the Indian market.

Outlook for Quick Commerce

Zepto’s growth story highlights the rapid evolution of the quick commerce industry in India. With consumers increasingly valuing speed and convenience, the sector is poised for further expansion. Zepto’s focus on innovation, operational efficiency, and customer acquisition places it in a strong position to sustain its growth momentum and edge closer to profitability.

As the company continues to scale, its journey will be one to watch, not just as a benchmark for quick commerce but as a testament to India’s burgeoning startup ecosystem.