Zepto’s Cash Burn Hits ₹300 Crore Amid Aggressive Growth Strategy

Mumbai : Quick commerce platform Zepto has reported a significant spike in its monthly cash burn, reaching ₹300 crore in October 2024, compared to ₹250 crore in September. This escalation aligns with increased investments in operations, digital marketing, and talent acquisition to outpace competitors such as Blinkit, Swiggy Instamart, and BigBasket.
The surge in expenditures comes alongside the closure of a ₹2,500 crore funding round, backed by prominent Indian high-net-worth individuals and family offices. With this round, Zepto’s cash reserves stand at a robust $1.4 billion, positioning the company to scale aggressively. CEO Aadit Palicha emphasized that the current burn rate is strategic, focusing on launching hundreds of new stores and capitalizing on festive season demand.

Digital marketing alone accounts for ₹120 crore per month, making Zepto the leading app in the quick commerce segment by downloads. The company is also offering deep discounts, particularly through its Super Saver unit, and competitive offers on high-demand products like iPhones to attract transacting users.

Despite the upfront costs, Palicha highlighted that over 70% of existing stores are EBITDA-positive, with new stores showing even stronger profitability trajectories. This bolsters investor confidence in Zepto's long-term growth, as the company eyes becoming a fully Indian-owned entity in the near future.