Zepto’s CEO and co-founder, Aadit Palicha, confirmed the developments, saying that more than 70 percent of their existing stores have achieved full EBITDA profitability.
He explained that the capital being spent is mostly for capital expenditure, working capital, and operational setup to launch hundreds of new stores every quarter.
“Although the investment is upfront, these stores have a better EBITDA trajectory than the older stores – giving us the conviction to invest in launching new stores, which is delivering 200%+ y-o-y growth on a base of 10s of thousands of crores of scale,” Aadit Palicha was has been quoted as saying in the report.
Quoting sources, the Moneycontrol report also added that Zepto has been aggressively investing in digital and performance marketing, including purchasing keywords on platforms like Google and Meta, and offering discounts to attract customers.
“The cost of acquiring keywords has risen significantly because of Zepto’s high bids. Some competitors have pulled back from spending as it no longer makes sense to acquire customers at such inflated rates,” a source has been quoted as saying.
To further boost its growth, Zepto is offering attractive discounts, including up to ₹ 4500 off on the latest iPhone models, especially on its Super Saver wholesale unit, to draw customers away from competitors.
Zepto is up against major players like Zomato-owned Blinkit, Swiggy Instamart, Tata’s BigBasket, and Flipkart Minutes in the quick commerce arena.
Zepto’s aggressive expansion and rapid growth continue to attract significant investor interest. The company has raised over a billion dollars this year and recently closed a fresh primary funding round of $300 million ( ₹ 2,500 crore) from various family offices looking to diversify their investments.
