Results · Commerce & Consumer Brands

Zepto reports revenue growth and net loss for fy24

By Startup Enthusiast · 13 December 2024

What they do

Zepto delivers groceries in ten minutes using over five hundred dark stores

FY24 revenue rose to Rs 4,454 Cr while the net loss fell slightly to Rs 1,248.6 Cr

The company aims for profitability by FY26 and plans an IPO in the second half of next year

Zepto reported Rs 4,454 Cr revenue for FY24, up from Rs 2,026 Cr in FY23.
Total expenditure increased to Rs 5,747 Cr from Rs 3,350 Cr in the previous fiscal year.
The company posted a net loss of Rs 1,248.6 Cr, which is down 2% from Rs 1,272 Cr in FY23.
Product sales accounted for Rs 3,973 Cr, representing 89.2% of operating revenue.
Non-operating income was Rs 44 Cr derived from interest on deposits.
Procurement costs rose 87% to Rs 3,481 Cr, making up 60.5% of total expenditure.
Employee benefits cost Rs 426 Cr, including Rs 74 Cr in ESOP expenses.
IT spending increased by 65.7% to Rs 116 Cr and advertising spend rose 40.3% to Rs 303 Cr.

Zepto holds a 29% market share, ranking as the second-largest player after Blinkit's 46%.
The company operates over 550 dark stores and processes more than 700,000 daily orders.
Zepto targets profitability by FY26 and plans an IPO in the second half of next year.

Zepto delivers over 25,000 products across various categories within ten minutes.
The business model relies on a network of dark stores located in urban areas.
Revenue is primarily generated through product sales of groceries and essentials.
The company launched a standalone app for its food delivery service called Zepto Cafe.
Zepto competes with services like Swiggy Bolt, Swish, Zing Food, and Blinkit Bistro.
Warehousing costs were Rs 493 Cr and delivery expenses totaled Rs 580 Cr in FY24.
Current assets stood at Rs 1,398 Cr, including Rs 692 Cr in cash and bank balances.
The expense-to-earning ratio was Rs 1.29, indicating costs exceeded earnings significantly.
ROCE was -119.3% and EBITDA margin was -23.81% during the fiscal year.

Zepto plans to launch a standalone app for its Zepto Cafe food delivery service.
The company aims to achieve profitability by FY26.
An IPO is planned for the second half of next year.

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.