Quick commerce company Zepto experienced a significant increase in losses during the financial year 2024–25 (FY25) despite a more than doubling of its sales. Zepto’s audited financial statements revealed a substantial 129% surge in total sales to Rs 9,668.8 crore in FY25 from Rs 4,223.9 crore in FY24. However, the company’s net loss escalated even more rapidly, soaring 177% year-on-year to Rs 3,367.3 crore compared to Rs 1,214.7 crore in the previous year.
The widening losses are attributed to the substantial spending required for operational expansion, including the addition of dark stores and customer attraction efforts in a fiercely competitive market. In FY25, Zepto’s losses accounted for approximately 35% of its turnover, up from about 29% in FY24. In the quick commerce sector, companies typically recognize only about 15–20% of gross merchandise value as revenue.
Despite reporting close to Rs 10,000 crore in total sales, Zepto’s operational revenue for FY25 is estimated to be between Rs 1,495 crore and Rs 1,994 crore. The competitive landscape intensified post-FY25, with major players aggressively expanding operations, enhancing delivery capabilities, and offering lucrative customer incentives. This competition further heightened after Zepto secured a $450 million investment, prompting competitors to expedite their expansion strategies to safeguard their market share.
Industry analysts note that despite the rapid growth in demand, this phase has exerted significant pressure on margins. Zepto’s FY25 performance coincides with its preparations to enter the public markets, with plans to confidentially submit its draft IPO papers on December 26. Additionally, changes at the board level have been made, with founders Aadit Palicha and Kaivalya Vohra, alongside chief financial officer Ramesh Bafna, appointed as whole-time directors following shareholder approval at an extraordinary general meeting on December 23.
