In recent days, a concerning pattern has emerged involving the Chief Financial Officer (CFO) of a competing firm who, according to internal sources at Zepto, has been orchestrating a smear campaign targeting the company.
The alleged tactics include reaching out to Zepto’s investors with unfounded claims, distributing fabricated data through intermediaries, and deploying bots across social media platforms to promote a misleading narrative.
In a statement issued by Zepto’s leadership, the company has strongly refuted these efforts and expressed disappointment at the “below-par conduct” expected from a senior executive of a reputed firm. The note suggests the motivation may stem from mounting anxiety over Zepto’s rapidly improving financial performance.
To provide clarity and transparency, Zepto shared several key updates on its business performance:
1. Growth in GOV (Gross Order Value):
Zepto has grown from approximately ₹750 crore in monthly GOV in May 2024 to ₹2,400 crore in May 2025. The calculation includes fruits, vegetables at selling price, and advertising revenue.
2. EBITDA Progress:
From January to May 2025, Zepto improved its EBITDA by 20 absolute percentage points (2,000 basis points), significantly lowering its cash burn by around 65%.
3. Sustained Growth:
Despite this sharp EBITDA improvement, Zepto maintained a monthly GOV growth rate of 4–5%, resulting in a total growth of roughly 20% over the last five months.
4. Store-Level Profitability Outlook:
The company expects a majority of its dark stores to be EBITDA-positive—including backend, support, and delivery costs—by next quarter. Overall company EBITDA and operating cash flow are projected to be within a few hundred basis points of breakeven.
5. Financial Stability:
As of Q2 FY25, Zepto holds ₹7,445 crore in net cash, reconciled with bank statements. With current burn rates, this runway extends over several years.
6. Financial Controls:
Zepto emphasized its robust financial governance, including high-integrity H2H payment practices, asset verifications, vendor audits, and a clean track record with Big 4 statutory audits and due diligence reviews.
7. Growth Plans Remain Intact:
Contrary to any speculation, Zepto is not planning widespread store closures. Instead, it is actively ramping up new store launches.
Zepto concluded its statement by urging restraint from competitors. “We’re okay with healthy, even aggressive, competition,” it said. “But misinformation is unacceptable. These tactics only reinforce to the investment community that we are a formidable and fast-growing challenger.”
The company reiterated its focus on operational execution and sustainable scale, calling for a renewed industry-wide commitment to fair play and ethical conduct.
