Zepto’s Meteoric Rise: The Startup That’s Outrunning Blinkit and Swiggy, Why Zepto is One to Watch?

At just a few years old, Zepto is already shaking up the quick commerce space and proving it’s no small fry in a game dominated by industry titans. The Bengaluru-based startup has gone from underdog to market leader, raking in a jaw-dropping ₹4,454 crore in revenue in FY24. That’s twice as much as Blinkit and four times Swiggy Instamart’s revenue.

But Zepto isn’t just about big numbers—it’s about smart moves. The company has shown it’s not afraid to go head-to-head with the giants, and now it’s setting its sights on a new challenge: food delivery. Here’s how this fast-moving startup is rewriting the playbook for Indian commerce.

The Numbers That Speak Volumes

Zepto’s growth story is nothing short of remarkable. In FY24, the startup doubled its revenue from the previous year, leaving its competitors in the dust. To put it in perspective:

• Zepto: ₹4,454 crore revenue
• Blinkit: ₹2,300 crore revenue
• Swiggy Instamart: ₹1,100 crore revenue

While revenue surged, Zepto also tightened its operations. Its expenses rose by 72% to ₹5,747 crore, but losses as a percentage of revenue dropped from 63% in FY23 to just 28% in FY24. That’s an incredible turnaround for a company that’s scaling so quickly.

The real kicker? Zepto brought its contribution margin loss (the loss per order after variable costs) from ₹8 at the end of 2023 to just ₹0.5 by April 2024. Essentially, Zepto is nearly breaking even on each order—an impressive feat in the hyper-competitive quick commerce market.

Zepto Cafe: The Startup’s Bold New Bet

As if outpacing Blinkit and Swiggy Instamart wasn’t enough, Zepto is now preparing to take on the likes of Zomato and Swiggy in food delivery. Enter Zepto Cafe, a standalone app that will focus on ultra-fast delivery of ready-to-eat snacks, beverages, and more.

Zepto Cafe positions the startup against competitors like Blinkit’s Bistro and Swiggy’s Instacafe, but it’s also an entirely new playground for Zepto. While not a full-fledged food delivery service (yet), this move brings the startup closer to Zomato and Swiggy’s home turf.

And the timing couldn’t be better. With over 1,200 dark stores planned across India by March 2025, Zepto will have the infrastructure to support both its core quick commerce business and Zepto Cafe’s operations. This will put it on par with Blinkit’s scale, allowing the company to expand its offerings without sacrificing speed—a key differentiator in the 10-minute delivery game.

How Zepto Cracked the Code

Zepto’s rise hasn’t been fueled by blind spending but by deliberate, strategic shifts. Between February and April 2024, the company doubled down on unit economics, optimizing operations to improve margins without compromising growth.

This focus on profitability is paying off. While most startups burn cash chasing scale, Zepto is already on the brink of turning profitable, thanks to its razor-sharp focus on reducing contribution margin loss and managing procurement costs.

The startup also raised a massive $1.3 billion in funding, giving it the firepower to expand aggressively and invest in technology, talent, and partnerships. And relocating to Bengaluru—Swiggy’s home turf—sends a clear message: Zepto isn’t here to play safe. It’s here to dominate.

The Road Ahead: Opportunities and Challenges

Zepto’s journey is far from over. While it’s already leading in quick commerce, the challenges of scaling further are real. Government regulations around quick deliveries, competition from traditional retailers, and the entry of ecommerce giants into the space could complicate the road ahead.

But Zepto’s biggest test will come with Zepto Cafe. The food delivery market is a different beast, and while the startup has proven it can innovate in grocery deliveries, cracking this space will require more than just speed. Zomato and Swiggy have spent years building trust, refining their models, and turning profitable in this cutthroat sector.

Still, Zepto’s track record of execution and its war chest of capital suggest it’s not a player to underestimate. The company is already exploring pharmacy, electronics, and fashion as potential extensions of its model, proving that its ambitions extend well beyond groceries and snacks.

Why Zepto Is One to Watch

What makes Zepto’s story so compelling is how quickly it has transformed the quick commerce landscape in India. The startup isn’t just growing—it’s growing smart, with a clear path to profitability and a bold vision for the future.

Zepto has shown that startups can thrive in crowded markets by focusing on execution, efficiency, and innovation. As it steps into new territories, all eyes will be on how this young company navigates its next big moves.

With its FY24 performance, Zepto has firmly cemented itself as a major player in India’s startup ecosystem. Whether it’s redefining convenience or challenging the status quo in food delivery, Zepto is proving one thing: it’s here to stay, and it’s playing to win.