If we do our job well, top line can grow to Rs 2.5 lakh cr in 5-10 years: Zepto CEO

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

New Delhi: Zepto, a leader in the fast-paced trading space, 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 well on its targets, 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 appliances market in India was worth around $650 billion in fiscal 2023 and is growing at 9% CAGR (compound annual growth rate) and is expected to reach around $850 billion by fiscal 2029.

“If we play this right, we can realistically grow the revenue of this business from over Rs 10,000 crores to potentially… Rs 2.5 lakh crores 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 will soon go public.

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% of the 10-minute grocery delivery market (known as fast e-commerce), up from 15% in March 2022. Blinkit is the market leader with almost 40%, with the rest held by Instamart.

“We have managed to fully convert 75% of our stores into profitable stores and we want to continue this trajectory while expanding into new cities,” Palicha said.