Zepto doubles accounting revenue in FY24; sees profitability in near term
Quick commerce Zepto has been burning cash to expand rapidly across categories and pin codes aided by its cash bank of close to $1.3 billion.
Quick commerce unicorn Zepto more than doubled its accounting revenue as it projected a clear path to profitability in the near term.
Zepto, which competes with Zomato's Blinkit and Swiggy's Instamart, among others, clocked Rs 4,454 crore in accounting revenue in FY24 from Rs 2,025 crore earned in the previous year, according to a LinkedIn post shared by Co-founder and CEO Aadit Palicha.
The company managed to rein in its absolute losses, with PAT (profit after tax) as a percentage of revenue improving from -63% to -28% during the same period.
"We expect to continue this growth momentum with a clear path to PAT profitability in the near term," stated the post.
This comes just days after the company announced its latest bet, Zepto Cafe, is expected to be spun out in a different app.
Zepto Cafe, which offers over 148 items, including freshly brewed chai, coffee, all-day breakfast, pastries, and savoury snacks, currently targets a revenue run-rate of Rs 1,000 crore by 2026.
The company had earlier said it crossed Rs 1,000 crore in annualised advertising revenue, amounting to Rs 83 crore per month.
During the calendar year 2024, the company raised close to $1.35 billion across three funding rounds from both domestic and international investors.
Edited by Kanishk Singh