Zepto shells out ₹100cr in salaries, outpacing Swiggy on pay
What's the story
Leading quick commerce player Zepto has paid out a total of ₹95 crore in April in salaries to its 3,000 employees, according to Moneycontrol.
Though it's a slight dip from the ₹115-120 crore it paid out in March, and ₹105-110 crore in January and February, the April number is still quite high in the food delivery and rapid delivery space.
Financial scrutiny
Zepto's CEO refutes claims of excessive cash burn
Zepto's dedication to lure top talent is clear as it often pays 2-3 times more than industry averages.
Last year, Moneycontrol reported that Zepto was burning ₹250-300 crore every month. This invited criticism from rivals for its high cash burn rate.
Eternal chief Deepinder Goyal claimed quick commerce companies are burning ₹5,000 crore a quarter, with Zepto contributing substantially more than half of it.
However, Zepto CEO Aadit Palicha dismissed these claims as "verifiably untrue."
Cost analysis
Employee costs compared to Swiggy
Zepto's employee costs of ₹100 crore are already 80% of what Swiggy pays out, even though the latter is a bigger organization.
Swiggy, which has multiple business units and a headcount of approximately 5,500 employees, had a monthly wage bill of about ₹120-130 crore during the same period.
Swiggy's wage bill is larger than Zepto's, but considering Swiggy's double workforce and multiple business units, the comparison highlights the difference in scale and operational structure.
Cost breakdown
Relocation expenses contribute to increased costs
Zepto bore relocation expenses for employees as it moved them from Mumbai to Bengaluru.
The company also recently moved into a new office, which led to higher costs in March.
However, from April onwards, employee costs normalized back to around the ₹100 crore mark.
These actions suggest that the company is focused on managing and adjusting costs based on operational needs.