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by IANS |
New Delhi, Dec 14 (IANS) Blinkit’s rival Zepto saw its expenses surge a whopping 71.6 per cent to Rs 5,747 crore in the last financial year (FY24), as the company clocked Rs 1,248.6 crore in losses.
The return on capital employed (ROCE) for the quick commerce company stood at -119.3 per cent and its EBITDA margin was -23.81 per cent, as per its financials.
Zepto’s operational revenue stood at Rs 4,454 crore in FY24. Effectively, the company spent Rs 5,747 crore (from Rs 3,350 crore in FY23) to earn Rs 4,454 crore last fiscal.
The Aadit Palicha-run company saw its information technology and advertising expenses rise to Rs 116 crore and Rs 303 crore, a rise of 65.7 per cent and 40.3 per cent, respectively.
The company incurred Rs 493 crore in warehousing costs and Rs 580 crore in delivery expenses.
When it comes to earnings, income from sale of products constituted over 89 per cent of the total operating revenue, and the rest of the income came from delivery, warehousing and advertising services.
Zepto also earned Rs 44 crore from non-operating income, as per its financials.
The company’s current assets stood at Rs 1,398 crore in FY24. Zepto recently earned $350 million in a funding round led by Motilal Oswal Private Wealth at a valuation of $5 billion.
Last week, Palicha said he is not against work-life balance and even recommends it to his competitors. His statement came after a viral post accused the quick e-commerce platform of toxic work culture.
The Reddit post, by an anonymous user, alleged that Zepto's working environment was “toxic”, with employees working exhausting 14-hour shifts. It claimed that the company also pressured employees with demanding expectations.
In quick commerce, despite Swiggy’s Instamart inventing the category, Zomato’s Blinkit has taken an early lead, and Zepto continues to execute well.
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