Zepto Incurs INR 390 Cr Loss In First Year Of Operations; FY22 Sales At INR 141 Cr
- ByStartupStory | November 19, 2022
Mumbai-based startup, Zepto a quick commerce platform incurred a loss of INR 390.3 Cr in its first year alone, in financial year 2021-22 (FY22). The Nexus Venture Partners-backed startup’s total revenue stood at INR 142.3 Cr in FY22. Zepto, which began operations in April 2021, had INR 532.7 Cr in FY22 in its total expenses.
In FY22, the Zeptos revenue from operations stood at INR 140.7 Cr. Startup’s majorly engages in wholesale distribution of groceries, fruits, vegetables and other grocery products. The startup showed revenue upon transfer of control of promised goods or services to customers. Zepto claims to deliver grocery and fruits products in 10-20 minutes, valued at $900 Mn. which is about 48X of its total revenue.
Meanwhile, Zepto also earned INR 1.6 Cr via other income, which mostly comprises of the interest earned on investment. EBITDA margin of Zepto in FY22, was about -259.39% On the expenses front, the startup spent aggressively on marketing during its first year of operations. Its advertising and promotional expenses stood at INR 175.5 Cr during the year, nearly 33% of its total expenses.
Alongside this the startup spent INR 213.2 Cr for purchases of stock-in-trade in FY22. The expense for supply chain stood INR 74 Cr, while employee benefit expenses were at INR 50.3 Cr. Which majorly consist of employee salaries, PF contributions, gratuity, and various other employee welfare benefits. As per its Linkedin page, Zepto currently has a total 1,950 employees.
As per media reports, Reliance-backed Dunzo is shutting down multiple darkstores and laying off employees to cut costs. Zepto was founded in 2021 by the then 19-year-olds Aadit Palicha and Kaivalya Vohra, dropouts of Stanford University.
Zepto first turned heads when it raised $60 Mn in its Series A round in October last year from Glade Brook Capital, Nexus, and YC Combinator, along with a couple of angel investors. Two months after raising its Series A round, Zepto bagged $100 Mn at a valuation of over $500 Mn from Glade Brook, Nexus, Breyer Capital, Lachy Groom, Global Founders Capital, Contrary Capital, and others.
Earlier this year, the startup raised $200 Mn in its Series C round led by Y Combinator’s Continuity fund. Kaiser Permanente Ventures, along with its existing investors, also participated in the round. As per a Redseer report, India’s quick commerce market is expected to witness a 10-15X growth and touch $5.5 Bn mark by 2025.
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