Under the leadership of Aadit Palicha, Zepto, a quick-commerce unicorn, disclosed a 120% rise in revenue for FY24, rising from ₹2,025 crore in FY23 to ₹4,454 crore.
The rise in demand for 10-minute deliveries over conventional e-commerce platforms and neighborhood Kirana stores is indicative of a change in consumer preferences.
Zepto Revenue Reports 120% Rise in Revenue in FY2024
Zepto decreased its net losses from ₹1,271.84 crore in FY23 to ₹1,248.64 crore in FY24, a 2% decrease despite the company’s rapid revenue growth.
Due to significant investments in marketing, materials, and operations, expenses increased by 72% from ₹3,350 crore in FY23 to ₹5,747 crore in FY24.
60% of total expenses were spent on procurement, which increased 87% to ₹3,481 crore in FY24.
The total cost of employee benefits, including ₹74 crore for non-cash Employee Stock Ownership Plans (ESOPs), came to ₹426 crore.
Due to the company’s investment in logistics, warehouse costs rose 43% to ₹493 crore, while delivery costs increased to ₹580 crore.
While technology spending increased by 66% to ₹116 crore for the optimization of digital infrastructure, marketing expenses increased to ₹303 crore with an emphasis on brand visibility.
What Helped Zepto?
Early choices like SAP FICO integration and automated revenue-to-cash reconciliation helped Zepto reach governance milestones, including a clean CARO and a full statutory audit by a Big 4 firm without financial qualifications.
As per Palicha, “Despite being only 3 years old, we were able to successfully close a full statutory audit by a Big 4 firm with no financial qualifications and a clean CARO. This rare achievement for a young startup is the outcome of a governance-focused culture at Zepto and early decision-making that prioritized controllership excellence (like SAP FICO integration, automated revenue-to-cash reconciliation, set up of an H2H payment system etc).”
In India’s quick-commerce market, the company has a 29% market share, ahead of Swiggy Instamart (25%), but behind Blinkit (46%).
With Blinkit and Swiggy Instamart reporting revenues of ₹2,301 crore and ₹1,100 crore, respectively, Zepto outperformed rivals in terms of revenue generation in FY24.
CEO Aadit Palicha declared the release of a special app for Zepto Café, a division that specializes in carefully chosen snack and drink options.
Zepto Café has been growing quickly, handling over 30,000 orders every day and adding more than 100 new locations each month.
The business is still hopeful about maintaining growth and soon reaching PAT profitability.
