Zepto co-founder Aadit Palicha told a group of analysts and investors that the Indian delivery startup expects to grow by 150% in the next 12 months. This suggests that the fast-growing quick commerce market in India is continuing to grow rapidly.
During a call organized by an investment bank, Palicha shared these insights with representatives from prominent investment firms like Abu Dhabi Investment Authority, Temasek, GIC, and Invesco. The spokesperson for the firm declined to comment when reached earlier in the day.
Palicha informed them that Zepto’s annual sales run rate has surpassed $1.5 billion and with a growth rate of approximately 150%, sales are projected to exceed $3.5 billion. Zepto competes with Zomato’s Blinkit, SoftBank-backed Swiggy Instamart, and BigBasket, all offering quick delivery services. BlinkIt’s current annual sales are around $2 billion.
Quick commerce is becoming increasingly popular in India’s unorganized retail market worth $1.1 trillion. Zepto, BlinkIt, Swiggy, and Tata-owned BigBasket’s BB Now are expected to achieve annual sales of over $6 billion, compared to overall e-commerce sales of around $50 billion. Online grocer BigBasket announced a complete shift to quick commerce.
The Indian e-commerce market grows at about 11-12% annually, while quick commerce has seen more than 100% growth each year for the last three years. Quick commerce companies are taking market share from larger e-commerce firms, according to e-commerce analyst Rahul Malhotra.
Investors in the call asked Palicha about the potential for quick commerce to expand beyond India’s major cities. Palicha stated that there is a significant opportunity in tier 2/3 cities. He also mentioned that Zepto has recently raised $1 billion, which will help the firm expand more aggressively.
Zepto, now valued at $5 billion, is finalizing a $340 million funding round led by General Catalyst, after closing a $665 million funding round in June.
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