Zepto crosses Rs 1,000 crore in annualised ad revenue

CEO Aadit Palicha took to LinkedIn to announce that Zepto has been raking in over Rs 83 crore a month on average

by e4m Staff
Published: Dec 2, 2024 1:27 PM | 2 min read

Quick commerce giant Zepto has surpassed Rs 1,000 crore in annualized advertisement revenue, averaging over Rs 83 crore per month. The achievement highlights the company’s strategic focus on monetizing its platform through advertising.

Aadit Palicha, Zepto’s co-founder, celebrated the milestone on social media, stating, “It’s been less than three years since we launched our Ads Business, and the team we put together has been executing like a machine. I’m honestly grateful to be working and learning from some of the smartest operators in Internet India today.”

In a bid to further bolster its ad capabilities, Zepto recently introduced Jarvis, a brand app designed to enhance visibility and boost sales for its platform’s merchants. This cutting-edge tool enables brands and sellers to connect directly with consumers, fostering long-term relationships and redefining engagement strategies.

According to the company's press release, Jarvis has already delivered over 15 billion ad impressions, contributing to more than 4% of Zepto’s advertising income as a percentage of sales. Jarvis is expected to revolutionize how brands interact with Zepto’s user base, offering an integrated approach to driving merchant growth and customer retention.

Zepto’s foray into the ad revenue stream aligns with a broader industry trend where quick commerce and digital platforms are unlocking significant revenue through advertising. According to a 2024 BofA Global Research, the industry standard for advertising income in the quick commerce sector typically ranges between 3% and 3.5%.

Global ride-hailing giant Uber reported $900 million in ad revenue for CY23, while Indian players like Paytm, PhonePe, and Jio have also ventured into ad platforms, recognizing their potential as cash-generating machines.