Zepto CEO Forecasts Rapid Growth, Aims for Rs 2.5 Lakh Crore Revenue in 5-10 Years
- ByStartupStory | July 6, 2024
Quick commerce giant Zepto is poised for exponential growth, with CEO Aadit Palicha projecting revenue to soar to Rs 2.5 lakh crore within the next 5-10 years, provided the company executes its strategies effectively. Speaking at the 7th JIIF Foundation Day, Palicha emphasized the pivotal role of grocery and household essentials in driving this ambitious expansion.
“Your grocery is bigger than all the other categories that Amazon and Flipkart serve combined. If you look at electronics, apparel, furniture, you combine everything, and you double it, it’s still not as large as grocery and household essentials,” Palicha remarked, underscoring the immense market potential.
Highlighting the current market dynamics, Palicha noted that the grocery and household essentials market in India reached $650 billion in FY23 and is projected to grow at a 9% CAGR, potentially reaching $850 billion by FY29.
Zepto has already demonstrated significant growth, with revenue surging from about Rs 2,000 crore in FY23 to over Rs 10,000 crore in FY24. Recently, the company raised $665 million in funding, valuing it at $3.6 billion, nearly tripling its valuation from the previous year, and positioning it for an imminent listing.
“The biggest challenge for the company remains hiring people with the right attitude,” Palicha acknowledged, stressing the importance of a skilled workforce in sustaining growth. Zepto plans to expand aggressively, aiming to double its network of warehouses to over 700 by March 2025, supported by reinvesting sales from established stores.
Currently holding a 29% market share in the 10-minute grocery delivery service segment (quick ecommerce), Zepto is pursuing further market penetration, buoyed by its growing profitability. Palicha highlighted that 75% of their stores have achieved profitability, signaling a robust financial foundation amid expansion.
With strategic investments from prominent entities such as Avenir Growth Capital, Lightspeed, and Avra Capital, alongside continued support from existing investors like Glade Brook and Nexus, Zepto is well-positioned to capitalize on India’s burgeoning quick commerce market.
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