From Struggles to Success Zepto, the fast-growing quick commerce startup from India, has hit a major milestone. Its advertising business just crossed a $200 million annual revenue run
Zepto, the fast-growing quick commerce startup from India, has hit a major milestone. Its advertising business just crossed a $200 million annual revenue run rate (ARR), up from only $40 million last year. That’s a 5X growth in just 12 months.
This massive jump comes despite a rough period for startups, with the funding winter, the Silicon Valley Bank collapse, and some internal challenges nearly pushing Zepto to the edge in 2022-23. But the company bounced back, and in a big way.
In a recent conversation with Y Combinator CEO Garry Tan, Zepto cofounder and CEO Aadit Palicha revealed that the company’s ad platform is now a key revenue driver.
He explained that Zepto’s advertising engine includes everything from campaign management and keyword suggestions to automated bidding and attribution. It’s built to deliver performance and scale – and it’s all done in-house, right out of India.
Palicha described it as a “high quality, performance ad stack,” and the numbers certainly back that up. By building a strong infrastructure, Zepto has turned its app into a revenue-generating platform for brands who want to reach customers in real-time.
One of the biggest factors behind Zepto’s growth is its use of AI. The company uses artificial intelligence not only for advertising but also to predict supply chain needs. This helps ensure fast deliveries while keeping costs under control.
In advertising, AI helps automate tasks like bidding for ad space and figuring out which ads are working (or not). This makes campaigns more efficient and boosts performance without requiring huge teams of people.
Zepto’s journey hasn’t been smooth. In 2022-23, the company faced several major challenges:
Palicha admitted these factors brought the company close to collapse. But the team doubled down on execution and made tough but necessary changes. That turnaround is now paying off.
Zepto made its name delivering groceries in under 10 minutes, but it’s no longer just about food. The company is now focusing on new product categories like:
These new verticals are expected to contribute significantly to Zepto’s revenue going forward. By offering more variety, Zepto is not only attracting new users but also increasing the value of each order.
With its ad business booming and new product lines coming in, Zepto is on track for even more growth. Palicha and his team are focused on maintaining their pace while staying profitable—a rare combination in today’s startup world.
Though he didn’t share a specific timeline for when the $200 million ARR was achieved, the rapid pace of growth shows that Zepto is not slowing down any time soon.
The company’s ability to build and scale a performance-driven ad business could become a playbook for other quick commerce or e-commerce players looking to monetize beyond just sales.
Zepto’s rise from a tough year to massive growth is a great example of how smart tech, clear focus, and execution can turn things around. In just one year, they grew their ad revenue fivefold, expanded into new categories, and built a future-ready platform—all while navigating the pressures of a tough market.
