Zepto’s losses widen 177 pc in FY25 to Rs 3,367.3 crore

Mumbai, Dec 26 : Quick commerce company Zepto saw its losses widen significantly in the financial year 2024–25 (FY25) even as its sales more than doubled.

According to the company’s audited financial statements, Zepto reported total sales of Rs 9,668.8 crore in FY25, a sharp jump of 129 per cent from Rs 4,223.9 crore in FY24.

However, its net loss expanded much faster, rising 177 per cent year-on-year (YoY) to Rs 3,367.3 crore, compared with a loss of Rs 1,214.7 crore in the previous year.

The widening losses reflect the intense spending required to expand operations, add dark stores and attract customers in a market where competition has heated up considerably.

In FY25, Zepto’s losses amounted to around 35 per cent of its turnover, up from about 29 per cent in FY24.

In the quick commerce business, companies typically recognise only about 15–20 per cent of gross merchandise value as revenue.

Based on this, Zepto’s operational revenue for FY25 is estimated to be between Rs 1,495 crore and Rs 1,994 crore, even though it reported close to Rs 10,000 crore in total sales including other income.

Competitive pressure has intensified further after FY25 and continued into the first and second quarters of FY26.

Major players have continued aggressive expansion by adding more dark stores, increasing delivery capacity and offering high customer incentives.

The competition escalated further after Zepto raised $450 million, prompting rivals to speed up their own expansion plans to protect market share.

Analysts tracking the sector have said this phase has kept margins under heavy pressure despite rapid growth in demand.

The FY25 performance also comes at a time when Zepto is preparing to enter the public markets. The company is set to confidentially file its draft IPO papers on December 26.

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