Swiggy and Zomato Watch as Zepto's Employee Costs Skyrocket

Image Source : Business Standard

Zepto, India’s quick commerce unicorn, has reported monthly employee costs nearing 100 crore rupees, reaching 80 percent of what larger competitors Zomato and Swiggy spend. Despite having a leaner workforce, Zepto’s aggressive hiring and compensation strategies have contributed to its rising fixed costs.

Employee Cost Breakdown
- Zepto’s wage bill for April stood at 95 crore rupees, a slight reduction from 115-120 crore rupees in March
- The company’s workforce is approximately 3,000 employees, significantly smaller than Swiggy’s 5,500 employees
- Swiggy’s monthly wage bill is estimated at 120-130 crore rupees, making Zepto’s costs disproportionately high given its size

Competitive Hiring Strategies
- Zepto has positioned itself as an aggressive recruiter, offering salaries 2-3 times higher than industry averages
- The company has covered relocation expenses for employees moving from Mumbai to Bengaluru, further increasing costs
- The quick commerce sector’s intense competition has led to inflated pay packages as companies vie for top talent

Market Implications
- Zepto’s high employee costs highlight the financial pressures in the quick commerce industry
- Rival firms, including Blinkit and Swiggy Instamart, are closely monitoring Zepto’s spending patterns
- Analysts are assessing whether Zepto’s hiring strategy will translate into long-term profitability

Future Outlook
- Zepto aims to stabilize employee costs while maintaining its competitive edge in talent acquisition
- The company’s expansion into new verticals, including Zepto Café, may further impact its financial structure
- Investors and stakeholders will be watching for updates on cost management and revenue growth strategies

Sources: Moneycontrol, Economic Times, Inc42