Zepto’s Bold Revenue Growth Projection

Please take note of the following information: Quick commerce unicorn Zepto’s revenue could potentially increase to Rs 2.5 lakh crore in the next 5-10 years if the company executes its business strategy effectively, as stated by a top company official on Saturday. During the 7th JIIF Foundation day, Zepto Co-Founder and CEO Aadit Palicha mentioned that grocery and household essentials are the top-selling categories on leading e-commerce platforms like Flipkart and Amazon in India.

He stated that the market for grocery and household essentials was around USD 650 billion in India in FY23, and it is growing at a rate of 9% annually, expected to reach about USD 850 billion by FY29.

Palicha expressed confidence in the company’s growth potential, stating that with successful execution, the business could grow from its current top line of over Rs 10,000 crores to a potential top line of Rs 2.5 lakh crore over the next 5-10 years. He emphasized the significant size of the grocery and household essentials market, stating that it surpasses all other categories combined on platforms like Amazon and Flipkart, including electronics, apparel, and furniture. Zepto’s revenue has increased significantly, growing from about Rs 2,000 crore in FY23 to over Rs 10,000 crore in FY24.

In a recent investment round, Zepto raised USD 665 million, valuing the firm at USD 3.6 billion, nearly triple its value a year ago, and is preparing to go public soon. The startup raised USD 665 million (about Rs 5,550 crore) from new investors, including New York-based private equity firm Avenir Growth Capital, Lightspeed, Avra Capital, and existing investors Glade Brook, Nexus, and StepStone Group.

One of the key challenges for the company is finding and hiring people with the right attitude. Zepto plans to expand its network of warehouses for delivering groceries within 10 minutes in a two-kilometer radius to more than 700 by March 2025 by reinvesting sales from established stores to fund the expansion.

Zepto currently holds approximately 29% market share in the 10-minute grocery delivery service, with Blinkit as the market leader with almost 40% market share and the rest held by Instamart. Palicha notably mentioned that 75% of their stores are fully profitable, and the company aims to maintain this profitability while expanding into new cities.