Zepto’s rapid rise in India’s quick commerce space is now being matched by equally rapid losses. The Mumbai based startup reported a sharp 177 percent increase in losses for FY25, touching Rs 3,367.3 crore, even as its revenue more than doubled during the year. The numbers underline the intense cost pressures that continue to define the ultra fast delivery business.
Founded by Aadit Palicha and Kaivalya Vohra, Zepto has been expanding aggressively across major Indian cities. The company has invested heavily in dark stores, rider fleets, technology, and deep discounting to win customers in a fiercely competitive market dominated by players like Blinkit and Swiggy Instamart. While this expansion has helped push sales sharply higher, it has also significantly inflated operating expenses.
According to the filing, marketing spends, logistics costs, and infrastructure investments remained the biggest contributors to the widening losses. Fast delivery promises of under 10 minutes require dense networks and high fixed costs, making profitability a tough near term goal. Industry experts note that quick commerce is still in its land grab phase, where scale and customer retention are prioritised over margins.
Despite the red ink, investors continue to back the sector on the belief that long term consumption trends and urban convenience demand will eventually lead to sustainable unit economics. Zepto has previously indicated that it is working on improving contribution margins through better inventory management, private labels, and higher order values.
For now, FY25 numbers highlight the reality of building speed at scale in India. Revenue growth alone is not enough to offset the heavy burn required to stay relevant in quick commerce. How quickly Zepto can rein in costs without slowing growth will be closely watched in the coming quarters, especially as funding becomes more selective and expectations around profitability grow louder.
