Quick commerce, popularly known as 10-minute grocery delivery service, is taking the world by storm, and Mumbai-based Zepto is no exception. The company reported an astounding 14-fold growth in the fiscal year ending in March 2023, showcasing the remarkable success of this on-demand delivery model. However, this meteoric rise also came with an increase in losses, more than tripling during the same period.
In FY23, Zepto recorded an impressive INR 2,024 crores in revenue, a substantial leap from the INR 142.36 crores in FY22. Nonetheless, this rapid growth was coupled with widening losses, reaching INR 1,272 crores in FY23 compared to INR 390 crores in the previous fiscal year.
Aadit Palicha, a key figure at Zepto, acknowledged the challenges and opportunities in the quick commerce space, stating, “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’s performance wasn’t solely about scale; the company claimed a significant improvement in its profit after tax (PAT) margin, reducing it from -277% to -63% in FY23. The company also shared its ambition to reach EBITDA breakeven (excluding ESOP and other statutory non-cash line items) within the next 10 months.
Zepto’s recent achievement of becoming India’s first unicorn of 2023 is a testament to its promising growth. The company successfully raised $200 million in a Series E funding round, valuing Zepto at $1.4 billion and accumulating a total funding of over $560 million to date. For an in-depth look at the timeline and details of Zepto’s funding journey, refer to TheKredible.
Operating in seven cities, Zepto delivers a wide array of products, including groceries, fruits, and vegetables. Notably, its top three markets in terms of sales are Mumbai, Bengaluru, and Delhi-NCR.
With the recent Series E funding, Nexus Venture continues to be the largest external stakeholder in Zepto, holding approximately 19.98% of the company. The company’s co-founders, Aadit Palicha and Kaivalya Vohra, together with their family, collectively own over 22.4% of Zepto, solidifying their dedication to the venture’s success.
Zepto’s phenomenal growth, combined with its ambitious goals, reflects the rapid evolution of the quick commerce landscape. As the sector continues to evolve, Zepto’s journey serves as a compelling narrative of innovation, challenges, and opportunities in the world of on-demand delivery services.
This remarkable story of growth, backed by substantial funding, underscores the growing demand for quick commerce and the potential it holds for transforming how consumers access essential goods.