Quick commerce firm Zepto, the first Indian unicorn of 2023, saw a significant jump in revenue in FY23 even as it logged increased losses during the year.
Zepto’s revenue grew over 14 times to Rs 2,024 crore for the financial year ended March 2023, as opposed to Rs 142.4 crore a year earlier. However, the Mumbai-based company incurred a loss of Rs 1,272 crore in FY23, over three times wider than the Rs 390.4 crore posted in the previous year.
The firm’s total expenses jumped over six times to Rs 3,350 crore in FY23, up from the Rs 532.7 crore it spent in the previous year. Employee benefit expenses rose 80% to Rs 263.4 crore, up from Rs 50.7 crore. Other expenses, which included supply chain-related, advertisement and software expenses grew to Rs 1,171.4 crore, up from Rs 313.7 crore a year ago.
On August 26, Zepto became the first Indian unicorn of the year after it raised $200 million at a $1.4 billion valuation from the likes of StepStone Group (a limited partner in existing investor Nexus Venture Partners) and Goodwater Capital, amid a funding winter for growth-and late-stage companies.
In a statement, Zepto said it would achieve “EBITDA breakeven (excl. ESOP and other statutory non-cash line items) in 10 months while continuing to grow the business meaningfully”.
In an interaction with ET, cofounder and chief executive Aadit Palicha said the firm’s revenue growth came on the back of expansion into new territories. “In FY24, we definitely expect to multiply the business meaningfully… we expect to grow at least more than 2x,” he told ET.
During a panel discussion at The Economic Times Startup Awards earlier this month, Palicha had said Zepto was aiming to cross Rs 10,000 crore in overall sales in the coming months.
The firm competes with the likes of Swiggy Instamart, Zomato-owned BlinkIt, and BigBasket’s BBNow in the quick commerce sector.