Quick commerce company Zepto has achieved remarkable success. It released its FY2024 data, showcasing a staggering 120% revenue growth. In FY23, Zepto's revenue was ₹2,026 crore, which surged to ₹4,455 crore in FY24. The company credits this revenue surge to its unique offering of 10-minute delivery service. As revenue increased, the company's losses decreased.
Zepto's net loss decreased by 2% in FY24 to ₹1,248.64 crore, compared to ₹1,271.84 crore in FY23. Consequently, the loss as a percentage of revenue fell from 63% in FY23 to 28% in FY24. Along with the revenue boost, increased marketing expenses have also driven up costs. In FY23, these expenses were ₹3,350 crore, growing to ₹5,747 crore in FY24. Today, Zepto stands as a major player in quick commerce, but do you know how it all started?
The Founding Friends
Kaivalya and Aadit were friends through school to college. With a desire to become entrepreneurs, both enrolled at Stanford University in the USA but dropped out to pursue their dreams. Back in Mumbai, they wanted to start a startup. Once, they ordered food via an online app, which was delivered in just 10 minutes. This inspired the idea of Zepto. They thought, if food can be delivered so quickly, why not groceries? Thus, in April 2021, Aadit and his friend Kaivalya Vohra launched Zepto, a web platform for grocery delivery.
Achieving Unicorn Status in 2023
After its launch, Kaivalya Vohra and Aadit Palicha heavily marketed Zepto, expanding it to various metropolitan cities across the country. Consequently, it became the first unicorn company of 2023, emerging as a major firm in quick commerce. Today, its market value exceeds $5 billion, approximately ₹41,965 crore.
Planning an IPO
Aadit Palicha has expressed hope for an initial public offering (IPO) in 2025. In November, Zepto secured $350 million in funding led by Motilal Oswal, with participation from key domestic investors like Indian HNIs, major financial institutions, and family offices. According to Palicha, the aim of this funding round was to strengthen domestic ownership ahead of the potential IPO in 2025.
