Zepto FY24 ad spends jump 41% to Rs 304 crore from Rs 216 crore in FY23

Quick-commerce platform Zepto saw a big jump in its revenue, growing by about 120%. Its earnings went up from Rs 2,026 crore in FY23 to Rs 4,455 crore in FY24. This rapid growth was driven by more customers choosing 10-minute delivery services.

Zepto's biggest expense during the year was buying goods, which cost Rs 3,449.83 crore. This was a 77% jump from Rs 1,953.03 crore spent the previous year.

Employee Expenses: Zepto spent Rs 426.30 crore on its employees in FY24, a 62% increase from Rs 263.45 crore the year before.

Warehousing Costs: The company spent Rs 492.65 crore on warehousing, up 43% from Rs 344.79 crore in the previous fiscal year.

Advertising Expenses: Zepto invested Rs 303.5 crore in advertising and promotions in FY24, a 41% rise from Rs 215.8 crore in FY23.

Zepto's strong revenue growth helped reduce its losses by improving profit margins. The company's net loss dropped by 2%, from Rs 1,271.84 crore in FY23 to Rs 1,248.64 crore in FY24. This also brought down its losses as a percentage of revenue from 63% in FY23 to 28% in FY24.

The company spent heavily on marketing, materials, and other costs, with total expenses rising by 72% from Rs 3,350 crore in FY23 to Rs 5,747 crore in FY24. Despite the increase, the company managed to slightly reduce its losses by around 2%, from Rs 1,272 crore in FY23 to Rs 1,249 crore in FY24.

CEO and co-founder Aadit Palicha took to LinkedIn and said, "Our accounting revenue has grown 120% year-on-year from...Even with 120 percent growth, our absolute losses came down year-on-year with PAT as a percentage of revenue improving from -63% in FY23 to -28% in FY24. We expect to continue this growth momentum with a clear path to PAT profitability in the near term."

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto Datalabs provides 10-minute deliveries for groceries, packaged foods, ready-to-eat meals, daily essentials, and electronics. In 2024, Zepto successfully raised over $1.3 billion through three funding rounds: $665 million in June, $340 million in August, and $350 million in November 2024.