Zepto aims to hit Rs 2.5 lakh Cr revenue in 5-10 years: Rediff Moneynews

New Delhi, July 6 (PTI) Zepto, one of the most popular instant trading providers, could see its revenues grow multi-fold to Rs 2.5 lakh crore in five to 10 years if the company is able to execute its plans well, a top company official said on Saturday.

In a speech on the occasion of the 7th JIIF Foundation Day, Zepto Co-Founder and CEO Aadit Palicha said that grocery and home goods are the mother of all categories sold on leading e-commerce platforms Flipkart and Amazon in India.

He added that the grocery and home products market in India was worth around $650 billion in fiscal 2023, is growing at 9 per cent CAGR (compound annual growth rate) and is expected to reach around $850 billion by fiscal 2029.

“If we do the job well, we can realistically grow this business from Rs 10,000-plus crores at the top today to potentially… Rs 2.5 lakh crores at the top in the next 10 years or the next five years,” Palicha said.

“Your grocery is bigger than all the other categories that Amazon and Flipkart serve combined. If you look at electronics, apparel, furniture, combine everything and double that, it’s still not as big as grocery and home goods,” Palicha said.

The company’s revenues grew more than five-fold to over Rs 10,000 crore in FY2024 from around Rs 2,000 crore in FY2023.

Last month, Zepto raised $665 million in an investment round that valued the company at $3.6 billion, nearly three times more than a year ago. The company plans to go public soon.

The three-year-old startup has raised $665 million (around Rs 5,550 crore) from new investors, including New York-based private equity firm Avenir Growth Capital, venture capital firm Lightspeed and Avra ​​Capital, a new fund founded by former Y Combinator Continuity chief Anu Hariharan and Andreessen Horowitz.

Existing investors also participated in the project, including Glade Brook, Nexus and StepStone Group.

Palicha said the biggest challenge for the company is hiring people with the right attitude.

The startup plans to double the number of warehouses it has to deliver groceries within a two-kilometer radius within 10 minutes to more than 700 by March 2025, by reinvesting sales from mature stores to fund expansion.

Zepto has about 29 percent of the market share for 10-minute grocery delivery services (known as fast e-commerce), up from 15 percent in March 2022. Blinkit is the market leader with almost 40 percent, with the rest held by Instamart.

“We’ve managed to turn 75 percent of our stores into fully profitable ones, so we want to continue that trajectory even as we expand into new cities,” Palicha said.