Zepto Posts 120% Growth, Marketing Investment Surges To Rs 303.5 Cr In FY24

Zepto posted revenue growth, with a 120 per cent surge from Rs 2,026 crore in FY23 to Rs 4,455 crore in FY24. The robust performance comes as more customers opt for the platform's popular 10-minute delivery services, driving demand and boosting sales.

Despite this strong revenue performance, Zepto's expenses also rose sharply. The company's biggest expenditure was the purchase of goods, totalling Rs 3,449.83 crore, an increase of 77 per cent from the previous year. Employee expenses climbed by 62 per cent, reaching Rs 426.30 crore, while warehousing costs rose 43 per cent, hitting Rs 492.65 crore.

Marketing and advertising played a significant role in Zepto's growth, with the company investing Rs 303.5 crore in promotions, a 41 per cent increase over FY23. This was part of the company's broader strategy to fuel its expansion in a competitive market.

In terms of profitability, Zepto managed to reduce its net losses by 2 per cent, with the figure dropping from Rs 1,271.84 crore in FY23 to Rs 1,248.64 crore in FY24. Notably, the company's losses as a percentage of revenue decreased significantly, from 63 per cent in FY23 to 28 per cent in FY24, indicating an improvement in profit margins.

CEO and Co-founder Aadit Palicha shared the company’s optimistic outlook on LinkedIn, noting, “Our accounting revenue has grown 120 per cent year-on-year from...Even with 120 per cent growth, our absolute losses came down year-on-year with PAT as a percentage of revenue improving from -63 per cent in FY23 to -28 per cent in FY24. We expect to continue this growth momentum with a clear path to PAT profitability in the near term."

Zepto Datalabs, founded in 2021 by Palicha and Kaivalya Vohra, offers 10-minute delivery services for groceries, packaged foods, ready-to-eat meals, daily essentials and electronics. In 2024, the company secured over $1.3 billion in funding across three rounds, $665 million in June, $340 million in August and $350 million in November.