Zepto, the Indian delivery startup, is making waves with its latest projections and achievements.
- Co-founder Aadit Palicha announced that Zepto expects 150% growth in the next year.
- The company’s sales run rate has already surpassed $1.5 billion.
- Zepto raised a staggering $1 billion in just 90 days.
- Quick commerce is booming in India’s retail market, gaining traction from larger e-commerce giants.
Zepto’s co-founder Aadit Palicha shared some exciting news with analysts and investors. The company anticipates a whopping 150% growth in the next 12 months.
Speaking during a call organized by an investment bank, Palicha highlighted that Zepto’s annualized sales run rate hit over $1.5 billion. With projected growth, sales could soar to more than $3.5 billion.
This rapid growth isn’t surprising, given the fierce competition in quick commerce. Zepto’s main rivals include Blinkit, Swiggy Instamart, and BigBasket. Blinkit’s current run rate is around $2 billion.
Quick commerce is making a significant impact in India’s $1.1 trillion unorganized retail market. Together, Zepto, Blinkit, Swiggy, and BigBasket are set to exceed $6 billion in annual sales, whereas overall e-commerce sales hover around $50 billion.
Quick commerce firms have grown by more than 100% each year for the last three years. Analyst Rahul Malhotra remarked that quick commerce is steadily taking market share from larger e-commerce companies.
On the call, investors were curious about the potential for quick commerce beyond India’s major cities. Palicha was optimistic, stating, ‘Quick commerce is not a Tier 1 phenomenon. Our data points to a huge opportunity in tier 2/3, regardless of market sentiment.’
Palicha also confirmed that Zepto raised $1 billion in the past 90 days, which will fuel even more aggressive expansion. Earlier reports suggested Zepto, now valued at $5 billion, finalized a $340 million funding round led by General Catalyst.
In June, the startup closed a whopping $665 million funding round. These investments bolster Zepto’s position in the heated quick commerce market.
Zepto’s ambitious growth plans and impressive fundraising efforts set the stage for an exciting year ahead in the quick commerce sector.
Source: Techcrunch