India

Zepto's Bold Moves Amidst Competition

Zepto's Bold Moves Amidst Competition

Zepto’s cash burn has surged to Rs 250–300 crore ($30–35 million) per month recently up from Rs 35–40 crore in May due to rising competition in quick commerce. This increase aligns with its investments in operations, digital marketing, hiring and store expansion. The company raised Rs 2,500 crore ($300 million) from Indian family offices to fund its growth.

CEO Aadit Palicha stated most existing stores are profitable, and new store openings drive over 200% annual growth. Zepto spends Rs 120 crore monthly on digital marketing, securing its position as a top app while offering steep discounts to attract customers. Rising keyword costs and 50–60% salary hikes reflect fierce competition.

With $1.4 billion in cash reserves Zepto competes with Blinkit, Swiggy Instamart, BigBasket and Flipkart Minutes leveraging the festive season to strengthen its market position.