Zepto is where Amazon was in 1990s, says co-founder
Zepto is aiming to emulate the early success of e-commerce giant Amazon. The firm's CEO and co-founder Aadit Palicha shared this goal at the Moneycontrol Startup Conclave 2024. He drew parallels between Zepto's current position and that of Amazon during late 1990s and early 2000s. Palicha stated, "We are sitting on the right macro and the right business model to create something that is very large. And if we just nail this we are sitting on a $50-80 billion outcome."
Zepto's strategy for achieving its ambitious goal
Palicha emphasized that the key to achieving this ambitious goal lies in execution and maintaining a razor-sharp focus. The CEO of the Mumbai-based quick commerce unicorn, also clarified that Zepto has no plans to venture into adjacent businesses in the coming years.
Zepto's impressive fundraising and valuation growth
Over the past year, Zepto has been actively raising funds and growing its valuation. In August last year, it secured $231 million of funding at a valuation of $1.4 billion. More recently, the firm raised an impressive $665 million at a valuation of $3.6 billion, as investors continue to show interest in India's burgeoning quick commerce sector.
Zepto attracts investor interest for additional funding
Zepto has also attracted investor interest for an additional $250 million in a new round, that values the company at around $4.6 billion. This round could potentially reach up to $400 million in size and may see private equity giants like General Catalyst and KKR join Zepto's cap table. The company's successful fundraising efforts highlight its strong position within India's quick commerce sector.
Focus on India's top urban households
According to a research note by Goldman Sachs in April, the total addressable urban retail market for quick commerce platforms is approximately $300 billion. Zepto wants to focus on the top 50-75 million households in India's top 40 cities, as they account for the majority of the country's grocery and daily essential purchases. The company predicts that by FY29, the Indian grocery market will be worth $850 billion, with these top bracket households accounting for $400 billion.
