Zepto Witnesses a 14-Fold Revenue Increase in FY23, Accompanied by a Threefold Rise in Losses

• ByStartupStory     |    October 27, 2023

Zepto, the quick commerce sensation specializing in 10-minute grocery delivery services, has reported a staggering 14-fold surge in revenue for the fiscal year ending in March 2023. However, the company has also seen its losses more than triple during the same period.

In FY23, Zepto achieved an impressive revenue of Rs 2,024 Crores, a substantial leap from its FY22 figure of Rs 142.36 Crores. Nevertheless, the company’s losses widened significantly, reaching Rs 1,272 Crores in FY23, compared to Rs 390 Crores in the preceding fiscal year.

Speaking on the company’s performance, Aadit Palicha stated, “We are heads down executing today. We still have a huge amount of work to do and problems to solve, but if we nail it, we will build an insanely big business.”

Zepto has made notable progress in improving its profit after tax (PAT) margin, reducing it from -277% to -63% in FY23. The company also revealed its intention to achieve EBITDA breakeven, excluding ESOP and other statutory non-cash line items, within the next 10 months.

This news comes on the heels of Zepto’s successful Series E funding round, which saw the company secure $200 million, valuing the firm at an impressive $1.4 billion. Notably, this milestone made Zepto the first unicorn of 2023 in India. The company has amassed a total of over $560 million in funding since its inception.

Zepto’s services cover a wide range of products, including groceries, fruits, and vegetables, and it operates in seven cities: Delhi-NCR, Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, and Chennai. Among these cities, Mumbai, Bengaluru, and Delhi-NCR stand out as the top three markets in terms of sales.

Following the recent Series E funding round, Nexus Venture retains its position as the largest external stakeholder in the company, holding approximately 19.98% stake. Meanwhile, the company’s co-founders, Palicha and Kaivalya Vohra, along with their family, collectively maintain over 22.4% ownership of the company.

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Zepto’s remarkable growth and expansion in the quick commerce industry continue to make headlines, cementing its status as a key player in the ever-evolving world of on-demand delivery services.

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