Even as quick commerce platforms such as Blinkit and Instamart by Swiggy are focussing on operational efficiency, the newest entrant Zepto is turning no store unturned ahead of its IPO which is expected later this year (2025).
The company has reported a significant growth in Gross Orders Value, which is basically the money spent by consumers on its app.
According to a post on Linkedin by its CEO & Founder Aadit Palicha, Zepto reached INR 2,400 Crores of Gross Order Value (GOV) pm in May 2025, from a mere INR 750 Cr in the same month in 2024.
Zepto includes the sales of Fruits and Vegetables as well in its primary sales aka GOV. Another reason for such a steep rise in its GOV is the inclusion of higher value categories such electronic items including speakers, headphones, etc.
Palicha said that their EBITDA has improved by 2,000 basis points or 20 absolute percentage points from Jan. ‘25 to May ‘25.
Experts are, however skeptical, cautious and divided of how the EBITDA is derived, what it includes and excludes.
He also noted that their cash burn rate is down 65%, which essentially means that customers who shopped earlier on the App are returning back to the platform frequently, thereby reducing their new customer acquisition costs significantly.
CAQ is one of the highest expenditure for e-commerce firms.
The Founder expects a majority of their dark stores to turn fully EBITDA positive – which include all fixed and variable costs incurred in running a dark store, backend and frontline supply chain costs and customer support expenses by Q3 FY 25-26. Ambitious, we must say!
Palicha also said that the company is certainly not planning to rationalise its dark store count, rather expand further.
The company also expects a company level EBITDA and Operating Cash Flow to be within a few 100 basis points of breakeven by end of this year.
Editor’s Note
There is a “dark pattern” in which these “dark stores” operate and report their profitability. With scale, dark stores can certainly break-even and make operating level profits.
But would it be sustainable in the long term is anybody’s guess. If it was so simple, our friendly neighbourhood kirana shopkeepers would have done it long ago.
The biggest challenge over all in retail and especially in quick commerce is the loyalty (or the lack of it) of consumers.
Shoppers buy specific products / brands from various apps which offer the most competitive price across brands and categories, rather than confirming to platform loyalty, thereby reducing their stickiness to a certain App.
With a severe backlash from offline distributors and small shopkeepers, prominent FMCG brands have streamlined their supplies since Jan. ‘25 to QCom platforms, offering only mid- to large sized packs and SKUs, so as to not cannibalise sales from small shops.
Zepto has till date raised INR 16,600 Cr (USD 1.95 Bn) over 10 rounds since 2011 when it was founded in Mumbai by two young men Aadit Palicha & Kaivalya Vohra.
In Jan. ‘25, the company reported annualised Gross Order Value of INR 25,520 Cr (USD 3 Bn).
The company is currently valued at INR 42,530 Cr (USD 5 Bn) and is poised for an IPO anytime soon in the coming months.
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