Zepto pays ₹95 crore in April salaries, rivals Swiggy on employee costs

Quick commerce platform Zepto disbursed ₹95 crore in salaries to its 3,000-strong workforce in April, according to a report by Moneycontrol. This figure, though lower than the ₹115-120 crore reported in March and ₹105-110 crore in January and February, reflects the company's growing fixed costs.
The increase in employee expenses highlights Zepto's aggressive hiring and compensation strategy. The report said that the company often offers salaries 2-3 times the industry average to attract top-tier talent. The March salary spike was partly attributed to the company's relocation of employees from Mumbai to Bengaluru and the associated expenses of moving into a new office. April's payout suggests a return to baseline levels.
High wage bills draw industry attention
The scale of Zepto's salary bill has drawn comparisons with established competitors. 'Zepto's employee costs of about ₹100 crore is already 80 per cent of what Swiggy pays out, despite the latter being a much larger organisation,' a source said, as quoted by the report.
Facing off against industry majors
Zepto competes with Blinkit and Swiggy Instamart in the grocery and essentials delivery segment. The firm has also entered the food and beverages space through Zepto Cafe, where it competes with Eternal (formerly Zomato) and Swiggy.
Eternal, which rebranded from Zomato and operates a wider array of services including Blinkit, has over 5,000 employees and pays out ₹160-170 crore in monthly wages. 'Zomato has over 5,000 employees and pays around ₹160-170 crore in wages each month but Zepto, which is at a much smaller scale, paid ₹100 crore,' a source said, as quoted by the report.
Cash burn concerns and industry scrutiny
Last year, Zepto was reportedly burning ₹250-300 crore monthly, raising eyebrows among rivals. Eternal's co-founder Deepinder Goyal claimed in March that quick commerce players were collectively burning ₹5,000 crore per quarter, with Zepto allegedly responsible for more than half. Zepto CEO Aadit Palicha dismissed these claims as 'verifiably untrue'.
With Blinkit, Swiggy Instamart, and Zepto locked in fierce competition, companies are increasing compensation packages, ESOPs, and incentives to attract top performers. Talent is also being poached from giants like Flipkart and Amazon as these firms race to expand rapidly. In this high-stakes battle, swelling salary bills have become the new norm.
Firm launches 'Zepto Atom'
Zepto Atom will be accessible via a standalone website and mobile application, and is positioned as a comprehensive tool for businesses seeking to enhance their understanding of customer preferences and improve performance on the platform.
The platform will enable brands to access data such as pin code-wise market share, allowing for hyperlocal insights into how products are performing in specific areas.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

7 hours ago

• Time of India

Aadit Palicha on Zepto dark store raid, dark patterns, and IPO

(Originally published on Jun 17, 2025, 05:00 AM IST ) The surprise inspection and subsequent suspension of its Dharavi dark store a fortnight ago triggered a spiral of bad news for Zepto. The high-growth quick commerce sensation came under scrutiny over hygiene of its stores, dark patterns, or alleged deceptive user interface techniques and seller concerns. Meanwhile, questions swirled around over whether Zepto put off its much-talked-about IPO, the pace of its growth came down, and its ambitious

Time of India

18 hours ago

• Time of India

Myntra launches quick commerce service in Delhi-NCR, Mumbai: How it is different from Blinkit, Zepto and others

Myntra has rolled out its "M-Now" 30-minute delivery service to Delhi-NCR and Mumbai, following a successful pilot in Bengaluru, a report has said. Unlike Blinkit, Zepto and other food-related quick commerce platforms, M-Now will specifically focus on delivering clothes, including from premium brands, in 30-minutes. Notably, Blinkit and Zepto also deliver some basic apparels such as tees and shorts. The M-Now service, first trialed in Bengaluru last December with around 10,000 SKUs, now offers collections from nearly 600 brands. Customers in the expanded zones can now get rapid delivery on items from popular names like Vero Moda, Mango, Calvin Klein, Tommy Hilfiger, Levi's and even luxury beauty and accessory brands such as Dyson, YSL, Prada, Carolina Herrera, and Huda Beauty, as per a report by The Economic Times. Myntra CEO Nandita Sinha had previously indicated the company's plans to bring the service to Mumbai, New Delhi and Pune. She noted a "significant demand from fashion-first and trend-focused premium customers for quick deliveries." Other fashion brands exploring quick-delivery by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Laticínios com até 26% OFF aqui na Shopper! Compre já Undo Myntra's move is part of a larger trend in India's e-commerce landscape, where fashion platforms like Ajio and Nykaa, along with new-age brands such as Newme, Slikk and Blip, are all exploring ultra-fast delivery. This momentum was initially sparked by quick commerce pioneers like Blinkit, Instamart, and Zepto, who expanded beyond groceries to include fashion and apparel from brands like Jockey, Manyavar, Puma, and Adidas. The report also pointed out the challenges, saying that one key hurdle is customer behaviour. As per as Snitch founder Siddharth Dungarwal, while initial interest in fast delivery is high, shoppers often revert to purchasing only basic wardrobe essentials like black t-shirts or shirts through these services. AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Economic Times

2 days ago

• Economic Times

Most expensive Nifty stock ever? Eternal at 455 PE dares you to doubt the hype

Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel If something is good enough, it would probably be expensive. But at 455 times earnings, Eternal isn't just expensive but in a valuation galaxy of its own. The Nifty 50's newest entrant is also its most richly valued stock, wearing a PE multiple that makes seasoned value investors squirm and growth investors think blame only Eternal. Two other Nifty constituents, Trent (132x PE) and Jio Financial (113x PE), are also sitting pretty above the 100x valuation mark, signaling a shift in investor appetite towards long-term growth over current the opposite end of the spectrum? Coal India , the public sector behemoth, trades at a humble PE of 6.8x, giving Nifty watchers a vivid picture of the valuation extremes in India's top 50 listed companies.A trailing 12-month (TTM) PE of 455 means investors are paying today for profits the company may earn over the next four and a half centuries, if earnings stood still. But theory rarely captures the speed at which some Indian digital-first companies are expanding. Eternal, formerly known as Zomato, is thriving in two of India's hottest consumer tech battlegrounds: food delivery and quick investor worries and growing competitive heat, the stock is anything but funds have been lining up for a bite of Eternal. In May alone, they pumped in ₹5,300 crore, making it the third-most bought stock that month, according to estimates by Prime this month, Morgan Stanley reiterated Eternal as its top India internet pick, citing its market leadership in both food delivery and quick commerce, a superior cost structure, and a balance sheet stronger than its peers. The firm has a target price of ₹320 on the Eternal shares are down 10% year-to-date, the Street isn't writing it off. Concerns loom large. Rapido's entry into food delivery, intensifying competition from Zepto, BigBasket, Swiggy Instamart, Amazon Now, and Flipkart Minutes in the quick-commerce race but believers say the company's edge lies in Securities' Sachin Salgaonkar returned from a recent internet tour upbeat on Eternal's quick commerce arm Blinkit:'Traction in Tier 2 cities surprised industry experts… some stores hit 1,000 orders per day within 6–9 weeks. Amongst the top platforms, only Zomato continues to add more dark stores while others like Swiggy/Zepto/BigBasket have started to slow down store adds.'That expansion drive, Salgaonkar believes, gives Blinkit a competitive edge, especially as rivals slow store additions. Interestingly, the real kicker isn't convenience or discounts but better product selection, especially in smaller Securities, too, maintains a Buy rating, valuing Eternal at ₹310 via a three-stage DCF model. The brokerage sees signs of softening pricing wars, noting that Instamart and Zepto have reduced the pricing gap with Blinkit. The end of the discount era may be in sight—a potential profitability Jefferies, Eternal is a long-term bet on the digitization of food services. 'With only ~20 million monthly transacting users currently, there's a long runway for growth. Blinkit is already the market leader in quick commerce and is poised for sharp margin improvement.'Palak Shah, VP, PL Capital, adds perspective from the institutional front: 'Markets focus on the total addressable market and execution capability. Eternal has proven itself in food delivery. The belief is now that they can replicate that in quick commerce. Once the capex phase is over, operational efficiency will drive the narrative.'Yet, competition is getting bolder. Rapido's attempt to disrupt the food delivery space by lowering commission rates is leading to speculation that the Gross Order Value (GOV) may start shifting from Sonthalia, CIO at Emkay Investment Managers, argues that while the entry barriers are low, fixing unit economics is extremely difficult. 'Just entering and playing the pricing game doesn't guarantee success. Execution capability is crucial. Yes, competition is increasing, but the 'right to win' currently lies with only one dominant player. Others are still evolving. New entrants will have to work really hard.'Eternal may just be the poster child for investors who bet on the future, even when the present valuation feels like a cliffhanger. For now, the 455x question remains: Is the market's faith eternal or just euphoric?: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)