Zepto’s Losses Surge 177% in FY25 to Rs 3,367.3 Crore Despite Strong Sales Growth

Mumbai — Quick commerce company Zepto reported a sharp widening of losses in the financial year 2024–25 (FY25), even as its sales more than doubled, reflecting the high cost of aggressive expansion in an increasingly competitive market.

According to the company’s audited financial statements, Zepto’s total sales rose 129 per cent year-on-year to Rs 9,668.8 crore in FY25, compared to Rs 4,223.9 crore in FY24. However, its net loss expanded at a much faster pace, surging 177 per cent to Rs 3,367.3 crore from Rs 1,214.7 crore a year earlier.

The growing losses highlight the heavy spending involved in scaling operations, adding new dark stores, and acquiring customers amid intensifying competition in the quick commerce segment. In FY25, Zepto’s losses accounted for nearly 35 per cent of its turnover, up from around 29 per cent in the previous financial year.

In the quick commerce business model, companies typically recognise only about 15–20 per cent of gross merchandise value as revenue. Based on this industry norm, Zepto’s operational revenue for FY25 is estimated to be in the range of Rs 1,495 crore to Rs 1,994 crore, despite the company reporting close to Rs 10,000 crore in total sales including other income.

Competitive pressures have continued to mount beyond FY25 and into the first and second quarters of FY26. Major players in the sector have maintained aggressive expansion strategies, adding more dark stores, boosting delivery capacity, and offering generous customer incentives to defend and grow market share.

The intensity of competition increased further after Zepto raised $450 million, prompting rivals to accelerate their own expansion plans. Sector analysts note that this phase of rapid growth has kept margins under significant pressure despite rising demand.

Zepto’s FY25 performance also coincides with preparations for a public market debut. The company is set to confidentially file its draft initial public offering (IPO) papers on December 26.

In parallel, Zepto has announced board-level changes. Founders Aadit Palicha and Kaivalya Vohra, along with chief financial officer Ramesh Bafna, have been appointed as whole-time directors following shareholder approval at an extraordinary general meeting held on December 23.

With inputs from IANS