Zepto’s Meteoric Rise: Approaching $4 Billion in Annualized Gross Order Value and Halving Cash Burn

In a significant development for the quick commerce industry, Mumbai based Zepto, the quick commerce startup that ships through ultra quick delivery today, announced that it is in the vicinity of annualized Gross Order Value (GOV) of $4 Bn. This is a wonderful 300% rise year on year for the company, and proves that the company continues to expand and grow in the market.​

Unprecedented Growth Amidst Competitive Landscape

Zepto is one of the power houses in the India quick commerce market that Aadit Palicha and Kaivalya Vohra founded during July 2021. The company’s strategy in satisfying the ever increasing demand for instant delivery services in urban centers is quite innovative, drawing in a network of contractor transporters that serve in strategically located dark stores, and is now able to promise and deliver groceries and other essential goods in a matter of minutes.​

All this is happening amid a market that is presented by Blinkit (by Zomato), Swiggy Instamart, Amazon India, Flipkart, and BigBasket, and as such, so is the competition for Zepto to be in the contest. Nevertheless, its main objective, a satisfied customer and operating efficiently, has made it one of the most leading mobile app in the industry.​

Financial Prudence: Halving Cash Burn and Eyeing Profitability

Apart from extreme revenue growth, Zepto has managed to reduce the loss in its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) by 50 per cent (excluding Employee Stock Ownership Plans (ESOPs) ) and operating cash flow burn in the last three months. This shows that the company operated under indicative financial prudence.

Zepto CEO Aadit Palicha said about two points that have always been important to us, one was make EBITDA (excluding ESOPs) break even and second was operating cashflow and we are now in touch distance of both these metrics. Having a substantial cash reserve means that this optimism allows it to weather the competitive landscape and continue to expand.​B

Strategic Initiatives and Market Positioning

Zepto has everything down to how it is today on the wings of strategic initiatives. The company has been proactive in optimizing Dark Store operations, and success was evident in previous expansion phases; new stores are already being pushed towards EBITDA breakeven. It improves the profitability of Zepto and enhances its promise of adding value to its customers.

An annualized GOV of $3.6 billion was sourced in the quarter ended December 31, as compared to $1.8 billion annualized gross sale run rate of Swiggy Instamart in the same period. The figures by Zepto stand out as it is showing the company’s position in the quick commerce space gaining in the cutthroat race.​

IPO Preparations and Investor Interest

Ahead of its prospective public listing, Zepto is said to be in talks for a $250 million secondary equity sale as it weighs raising domestic ownership, something the firm has been trying to do. By the end of Q3 FY26, the company would be trying to reach profitability of EBITDA to public market investors in its IPO filing.​

It is in line with Zepto’s vision in the long term and its continued commitment in creating value for the stakeholders. The firm’s capability to receive funding while the pace of growth and competition in the field is also so high can be interpreted as a sign that the prospect of the company is favorable and the expectations from the company by the investment society is quite optimistic.​

Zepto Ahead

Zepto’s transition from ‘flyer’ startup to one of speedy commerce players who makes quick commerce work in India has been one of innovation, strategic foresight, and operational excellence. At this time when the company scales even newer heights, adoption of betting on sustainable growth will situate the company well with a customer centricity mindset and sound financial footing to face the upcoming trials and tribulations as well as the dynamic nature of fast commerce space.