Zepto’s Ad Business Achieves Rs 1,000 Crore Milestone in Three Years

Zepto, the quick-commerce giant, has reached a remarkable milestone by crossing Rs 1,000 crore in annualized advertising revenue just three years after launching its ad business. Aadit Palicha, the brand’s co-founder and CEO, shared the achievement on LinkedIn, lauding the team’s efforts.

“We just crossed 1,000 Crores in Annualized Advertising Revenue (83+ Cr per month)!! It’s been less than 3 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,” Palicha wrote.

Introducing Jarvis: Zepto’s In-House Ad Platform
Zepto recently launched Jarvis, an in-house advertising platform designed for brands and sellers. With its cutting-edge capabilities, Jarvis aims to enhance brand salience and boost platform sales by running optimized and targeted campaigns tailored to Zepto’s user base.

According to Zepto’s press release, Jarvis has already served over 15 billion ad impressions and generated significant revenue. Advertising income now constitutes over 4% of Zepto’s sales—a figure that surpasses the quick-commerce industry benchmark of 3%-3.5%, as per a 2024 BofA Global Research report.

This performance highlights Zepto’s superior ability to integrate ads seamlessly within its platform while delivering measurable results for advertisers.

Quick Commerce: A Rapidly Expanding Industry
Zepto’s success is set against the backdrop of India’s burgeoning quick-commerce (q-comm) industry. Valued at USD 3.34 billion in 2024, the market is projected to grow at a CAGR of over 4.5%, reaching USD 9.95 billion by 2029, according to financial services firm Chryseum.

This fast-growing sector is characterized by intense competition, with Zepto facing established players like Swiggy Instamart, Blinkit, and BigBasket. Recent entrants such as Flipkart Minutes and Amazon Tez have added further dynamism to the market.

Amazon’s Entry in Q-Comm
E-commerce giant Amazon has now joined the quick-commerce race with its newly launched platform, Amazon Tez. Leveraging its extensive logistical capabilities and deep pockets, Amazon is expected to disrupt the landscape and intensify competition.

Zepto’s Strategic Edge
Zepto’s early foray into in-house advertising has positioned it as a pioneer in leveraging ad revenues within the quick-commerce space. The company’s ability to consistently exceed industry benchmarks is a testament to its innovative strategies and the efficiency of its ad platform, Jarvis.

With Jarvis already outperforming traditional ad revenue metrics and quick commerce gaining traction in India, Zepto is well-positioned to retain its edge. As the industry continues to evolve, Zepto’s success story could serve as a blueprint for integrating advertising and e-commerce.

Future Outlook
As the quick-commerce market expands, companies will need to innovate continuously to maintain relevance. Zepto’s rapid growth trajectory, combined with its focus on optimizing brand performance, provides a clear indication of its long-term vision.

The competition from new players like Amazon Tez and Flipkart Minutes will likely fuel further innovation in the sector, but Zepto’s strong foundation, forward-thinking leadership, and technological advancements ensure that it will remain a formidable contender.

In just three years, Zepto has demonstrated how quick-commerce platforms can unlock new revenue streams through advertising. As the company scales its operations, the impact of its ad platform will likely extend beyond its ecosystem, reshaping the dynamics of advertising within the Indian quick-commerce landscape.

Author: Sonali Kamble