Zepto’s CEO Predicts Thrilling Growth: Bigger Than D-Mart in 18-24 Months, Aiming for Rs 2.5 Lakh Crore Revenue

Zepto's Rapid Growth: Aiming for Rs 2.5 Lakh Crore Revenue

Key Highlights:

• Revenue Target: Zepto CEO Aadit Palicha aims for Rs 2.5 lakh crore revenue within 5-10 years.
• Market Size: The grocery and household essentials market in India was around $650 billion in FY23, expected to grow to $850 billion by FY29.
• Current Market Share: Zepto holds about 29% of the 10-minute grocery delivery market, up from 15% in March 2022.
• Recent Funding: Zepto raised $665 million, valuing the company at $3.6 billion.
• Expansion Plans: The startup plans to double its warehouses to over 700 by March 2025.
• Profitability: 75% of Zepto’s stores are fully profitable.
• Comparison to Competitors: Zepto aims to surpass D-Mart's sales within 18-24 months.

Detailed Overview:

• Revenue Ambition:
  • Zepto aims to achieve Rs 2.5 lakh crore in revenue over the next decade.
  • CEO Aadit Palicha announced this goal at the 7th JIIF Foundation Day event.
• Market Potential:
  • The grocery and household essentials market in India was valued at $650 billion in FY23.
  • This market is expected to grow to $850 billion by FY29, with a CAGR of 9%.
• Market Dominance:
  • Zepto’s current market share in the 10-minute grocery delivery segment is 29%, up from 15% in March 2022.
  • The quick-commerce sector has seen rapid growth and competition.
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• Revenue Growth:
  • Zepto’s revenue increased from Rs 2,000 crore in FY23 to over Rs 10,000 crore in FY24.

• Funding and Valuation:
  • Zepto recently raised $665 million in a funding round.
  • This round included new investors like Avenir Growth Capital, Lightspeed, and Avra Capital.
  • Existing investors such as Glade Brook, Nexus, and StepStone Group also participated.
  • The company’s valuation nearly tripled to $3.6 billion from the previous year.
• Expansion Strategy:
  • Zepto plans to double its warehouse count to over 700 by March 2025.
  • The expansion will be funded by reinvesting sales from mature stores.
• Profitability Focus:
  • 75% of Zepto’s stores are fully profitable.
  • The company aims to maintain profitability while expanding into new cities.
• Competitor Comparison:
  • Zepto aims to surpass D-Mart, a $30 billion company, in sales within the next 18-24 months.
  • CEO Palicha believes Zepto can grow 2-3 times annually with consistent execution.
  • The focus will be on the top 40 cities in India, targeting 50-75 million households.

Summary :

Zepto’s rapid growth from zero to Rs 10,000 crore in less than three years highlights its potential in the grocery delivery market. With strategic expansion, significant market share, and a strong focus on profitability, Zepto is well-positioned to achieve its ambitious revenue targets and become a major player in the industry.