Zepto Reports a 71% Increase in Expenses for FY24, with Losses Reaching Rs 1,248 Crore
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New Delhi, Dec 14 (NationPress) The competitor of Blinkit, Zepto, has reported a staggering 71.6% increase in their expenses, amounting to Rs 5,747 crore for the previous financial year (FY24), while recording losses of Rs 1,248.6 crore.
The return on capital employed (ROCE) for this quick commerce entity was at -119.3%, with an EBITDA margin of -23.81%, according to its reported financials.
In FY24, Zepto’s operational revenue was Rs 4,454 crore. This indicates that the company spent Rs 5,747 crore (up from Rs 3,350 crore in FY23) to generate Rs 4,454 crore in revenue.
Under the leadership of Aadit Palicha, the company faced significant increases in its information technology and advertising expenses, which rose to Rs 116 crore and Rs 303 crore respectively, marking increases of 65.7% and 40.3%.
Warehousing costs totaled Rs 493 crore, while delivery expenses accounted for Rs 580 crore.
In terms of earnings, over 89% of the total operational revenue came from the sale of products, with the remainder derived from delivery, warehousing, and advertising services.
Additionally, Zepto generated Rs 44 crore from non-operating income, as disclosed in its financial statements.
The company’s current assets were valued at Rs 1,398 crore in FY24. Recently, Zepto secured $350 million in a funding round led by Motilal Oswal Private Wealth, reaching a valuation of $5 billion.
Palicha remarked last week that he advocates for work-life balance and encourages it among his competitors. This statement followed a viral post that accused the quick e-commerce platform of fostering a toxic work culture.
The Reddit post, submitted by an anonymous user, claimed that the work environment at Zepto was “toxic”, with employees facing 14-hour shifts and high-pressure expectations.
In the quick commerce sector, even though Swiggy’s Instamart pioneered the category, Zomato’s Blinkit has taken an early advantage, while Zepto continues to perform effectively.
