Zepto, a quick commerce platform, paid out ₹95 crore in salaries to its 3,000 employees in April. This amount represents the company's rising fixed costs even though it is less than the ₹115–120 crore recorded in March and the ₹105–110 crore recorded in January and February.

Key Highlights

• Zepto disbursed ₹95 crore in April salaries, nearing Swiggy's payroll despite a smaller workforce.
• Aggressive hiring and premium pay scales position Zepto as a formidable competitor in quick commerce.

The increase in employee expenses demonstrates Zepto's aggressive hiring and compensation strategy. In order to attract top talent, the company regularly offers salaries that are two to three times higher than the industry average, according to the report. The company's decision to move its employees from Mumbai to Bengaluru and the expenses of setting up a new office were two factors contributing to the March pay increase. The payout for April shows that baseline levels have returned.

High wage bills attract industry attention

The size of Zepto's salary bill has prompted comparisons to established competitors. According to reports, Zepto's employee costs of around ₹100 crore are already 80% of Swiggy's, despite being a much larger organization.

Swiggy, with approximately 5,500 employees and multiple verticals including food delivery, quick commerce, events, and dining, had a wage bill of ₹120-130 crore during the same period. Despite being significantly smaller in size and workforce, Zepto's payroll is nearly comparable to its more diverse competitor.

Competing with major industry players

Zepto competes with Blinkit and Swiggy Instamart for grocery and essentials delivery. The company has also entered the food and beverage market through Zepto Cafe, where it competes with Eternal (formerly Zomato) and Swiggy.

Eternal, which rebranded from Zomato and operates a wider range of services including Blinkit, has over 5,000 employees and pays ₹160-170 crore monthly wages. According to a source, Zomato pays around ₹160-170 crore in monthly wages, while Zepto pays only ₹100 crore.

Cash burn issues and industry scrutiny

Last year, Zepto was reportedly burning ₹250-300 crore monthly, which raised concerns among competitors. In March, Deepinder Goyal, co-founder of Eternal, claimed that quick commerce players were burning ₹5,000 crore per quarter, with Zepto allegedly accounting for more than half. Zepto CEO Aadit Palicha dismissed the allegations as "verifiably false."

With Blinkit, Swiggy, Instamart, and Zepto competing fiercely, companies are increasing compensation packages, ESOPs, and incentives to attract top talent. Talent is also being poached from behemoths like Flipkart and Amazon as they race to expand quickly. In this high-stakes battle, rising salaries have become the new normal.

Firm launches 'Zepto Atom'

Zepto has launched 'Zepto Atom', a new subscription-based analytics platform designed to provide its brand partners with deep insights into consumer behavior and market trends. The platform was introduced earlier this month with the goal of using real-time data to assist Zepto-listed brands in making better business decisions.

Zepto Atom is positioned as a complete tool for companies wishing to enhance their comprehension of customer preferences and platform performance, and it will be accessible as a stand-alone website and mobile application.

The platform will allow brands to access data such as pin code-based market share, providing hyperlocal insights into how products perform in specific areas.