Zepto FY24 Revenue Doubles Amid Rising Ad Spend and Costs
Zepto doubled its revenue in FY24, reduced losses, and raised over $1.3 billion in funding, all while reshaping India’s quick-commerce market.
Deepanjali
Zepto, the quick-commerce giant, made waves in FY24 with a staggering 120% revenue growth, climbing from ₹2,026 crore in FY23 to ₹4,455 crore. This remarkable leap was fueled by the increasing popularity of its 10-minute delivery services, attracting a growing customer base. Despite the revenue surge, Zepto's expenses also saw a significant rise, jumping 72% from ₹3,350 crore in FY23 to ₹5,747 crore in FY24.
The company’s biggest expenditure was the procurement of goods, which reached ₹3,449.83 crore, up 77% from the previous year’s ₹1,953.03 crore. Another major expense category was employee costs, which rose 62% to ₹426.30 crore, compared to ₹263.45 crore in FY23. Warehousing costs also surged by 43%, touching ₹492.65 crore in FY24.
On the advertising front, Zepto invested heavily to strengthen its brand presence, spending ₹303.5 crore, a 41% increase from the ₹215.8 crore spent in FY23. These investments have solidified Zepto’s positioning in the competitive quick-commerce market.
Despite the rise in spending, Zepto successfully narrowed its net loss by 2%, reducing it from ₹1,271.84 crore in FY23 to ₹1,248.64 crore in FY24. This improvement in profit margins was reflected in its losses as a percentage of revenue, which dropped sharply from 63% in FY23 to 28% in FY24.
Zepto's CEO and co-founder, Aadit Palicha, shared his optimism on LinkedIn, highlighting the company's significant growth. He noted, “Our accounting revenue has grown 120% year-on-year, and our absolute losses came down year-on-year. PAT as a percentage of revenue improved from -63% in FY23 to -28% in FY24. We expect to continue this growth momentum with a clear path to profitability in the near term.”
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has emerged as a leading player in the quick-commerce space, offering 10-minute deliveries for groceries, daily essentials, and more. In addition to its operational milestones, the company achieved a significant funding boost in 2024, raising over $1.3 billion across three rounds—$665 million in June, $340 million in August, and $350 million in November.
Zepto’s strong focus on scaling its operations while managing costs has positioned it as a formidable contender in the growing quick-commerce sector. With its rapid growth trajectory and commitment to profitability, Zepto is poised to continue reshaping consumer habits in India’s dynamic e-commerce market.
