By Vineet Kumar 
Zepto, the quick-commerce trailblazer, is in the spotlight for its aggressive expansion spree and record-breaking funding. Over the past two months, the company’s cash burn has skyrocketed to over ₹250 crore ($30 million) per month, a sharp increase from ₹35-40 crore just five months ago. This surge in spending comes amid stiff competition in the quick commerce sector, as Zepto vies for dominance against players like Blinkit, Swiggy Instamart, Tata’s BigBasket, and Flipkart Minutes.
A Record-Breaking Funding Round
Zepto recently closed a massive ₹2,500 crore ($300 million) funding round, marking the largest-ever 100% domestic financing deal for a private Indian startup. CEO and co-founder Aadit Palicha expressed confidence in the company’s strategy, citing strong investor backing due to proven profitability in over 70% of its existing stores.
“While our cash burn is focused on capex, working capital, and setting up operations for hundreds of new stores every quarter, the returns are promising,” said Palicha. “New stores are scaling faster, and we’re seeing over 200% year-on-year growth on a base that’s already in the tens of thousands of crores.”
The Cost of Growth
To maintain its edge, Zepto has doubled down on spending, especially in digital marketing and talent acquisition. The company is reportedly burning ₹120 crore each month on digital marketing alone. It dominates keyword bidding on Google and Meta, pushing competitors out of the race. For instance, brands like Blinkit have reduced their ad spend, deeming the keyword acquisition costs unsustainable.
Zepto’s app downloads on the Google Play Store reflect this surge in visibility, making it the leader in its category. But the spending doesn’t stop there. To lure top talent, the company is offering salary hikes of up to 50-60%, a bold move in an industry grappling with tight margins.
Deep Discounts Drive Customer Acquisition
Zepto has also turned to aggressive discounting to draw customers. Its wholesale unit, Super Saver, offers substantial deals, while products like the latest iPhones are being sold at a ₹4,500 discount, making the platform irresistible for shoppers during the festive season.
For example, during Diwali, users could grab heavily discounted electronics and bulk groceries—perfect for the gifting season or large family gatherings. By cutting prices sharply, Zepto aims to lock in customer loyalty, even if it means higher upfront spending.
A Festive Push Amid Rising Competition
The timing of this spending spree aligns with India’s festive season, the busiest period for e-commerce. With a cash reserve of $1.4 billion, Zepto is gearing up for an all-out battle to secure market share. Investors such as Raamdeo Agrawal (Motilal Oswal), Ranjan Pai (Manipal), and family offices of brands like Mankind Pharma, Cello, and Bisleri have fueled this war chest.
“We believe this is the right time to accelerate, not slow down,” said a source close to the company.
What’s Next?
Zepto’s bold moves signal its intent to dominate the quick commerce space and eventually become a fully Indian-owned company. However, with Swiggy recently listing on the stock market and Zomato preparing to raise $800 million-$1 billion through a Qualified Institutional Placement (QIP), the competition is set to intensify.
While the risks of aggressive cash burn are evident, Zepto’s combination of proven profitability in existing stores, rapid new store launches, and strategic discounts may help it ride the wave and emerge as a leader in India’s booming quick-commerce sector.
