Zepto, the 10-minute grocery delivery service, experienced a remarkable 14-fold growth in the fiscal year ending in March 2023. However, the Mumbai-based company also saw its losses increase by more than three times over the same period.
Experiencing a 14-fold expansion, Zepto recorded INR 2,024 crore in revenue during FY23. In the previous fiscal year, FY22, the company generated INR 142.36 crore in revenue but incurred losses amounting to INR 390 crore. However, in FY23, the company’s losses significantly increased to INR 1,272 crore.
“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,” said Aadit Palicha in a statement.
According to the company, it has made substantial progress in enhancing its Profit After Tax (PAT) margin, reducing it from -277% to -63% in FY23. Zepto further stated that it is on a trajectory to attain EBITDA breakeven, excluding ESOP and other statutory non-cash items, within the next 10 months.
Zepto recently secured $200 million in a Series E funding round, resulting in the company’s valuation reaching $1.4 billion. This also made the firm India’s first unicorn of 2023. It has raised over $560 million in funding to date.
The company offers a selection of 6,000 products spanning groceries, fruits, and vegetables, catering to customers in seven cities: Delhi-NCR, Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, and Chennai.
Mumbai, Bengaluru, and Delhi-NCR stand as the company’s three leading markets in terms of sales.
After the completion of the Series E round allocation, Nexus Venture continues to hold the most significant external ownership stake in the company, amounting to approximately 19.98%. Collectively, the company’s co-founders, Palicha and Kaivalya Vohra, along with their family, maintain a combined ownership of over 22.4% of the firm.