Zepto gets close to $4 billion in annualised gross order value
The quick commerce unicorn is nearing EBITDA breakeven as it gets close to $4 billion in gross order value amid strong competition.
Quick commerce unicorn Zepto is nearing $4 billion in annualised gross order value (GOV), marking a 4x year-over-year growth and 30% rise since January.
"We are confident in being within touching distance of EBITDA (excl. ESOPs) and OCF breakeven within a few months (with a large net cash buffer still on balance sheet)," said Zepto Co-founder and CEO Aadit Palicha, in a LinkedIn post.
Palicha said that Zepto has reduced its EBITDA (loss) and operating cash flow burn by 50% over the last three month. He also said that its newly launched dark stores are moving towards EBITDA breakeven.
Zepto considers GOV of fruits and vegetables at price and includes ancillary income sources such as subscription and advertising as part of its GOV. Late last year, the company said it had crossed Rs 1,000 crore in annualised advertising revenue, amounting to Rs 83 crore per month.
Just a month ago, Palicha announced that Zepto Cafe has crossed 1,00,000 orders per day, closing in on a $100 million annualised GMV run-rate. It currently operates with a steady gross margin of about 50%.
Earlier this week, YourStory reported on Zepto's plans to replace its subscription plan Zepto Pass with Zepto Daily, which is expected to come with extra benefits. In an aggressive move to acquire users, the company is courting select invite-only customers with just Rs 1 entry fee, compared to Rs 19 for Zepto Pass.
Edited by Swetha Kannan