Zepto projects revenue surge to Rs 2.5 lakh crore in 5–10 years

Zepto projects revenue surge: Quick commerce unicorn Zepto could see its revenue skyrocket to Rs 2.5 lakh crore within 5–10 years if it maintains strong execution, according to CEO Aadit Palicha. Speaking at the 7th JIIF Foundation Day, Palicha highlighted the immense potential in the grocery and household essentials market in India.

Palicha stressed the dominance of grocery and household essentials in the e-commerce landscape, noting their importance on platforms like Flipkart and Amazon. He cited the market’s size at $650 billion in FY23, with an annual growth rate of 9 per cent, projecting it to reach $850 billion by FY29.

"If we execute well, we can realistically take this business from over Rs 10,000 crore today to potentially Rs 2.5 lakh crore in the next five to ten years," Palicha stated. He stressed the enormity of the grocery market, surpassing all other categories served by major e-commerce players combined.

Zepto's revenue surged fivefold to over Rs 10,000 crore in FY24 from around Rs 2,000 crore in FY23. The company recently raised $665 million in a funding round, valuing it at $3.6 billion, nearly tripling its valuation from the previous year. The investment round included new backers such as Avenir Growth Capital, Lightspeed, and Avra Capital, alongside existing investors like Glade Brook, Nexus, and StepStone Group.

Palicha identified hiring the right talent as Zepto’s biggest challenge. The startup plans to double its warehouse count to over 700 by March 2025, reinvesting profits from mature stores to fund expansion. These warehouses enable Zepto to deliver groceries within 10 minutes within a two-kilometre radius.

Zepto currently holds a 29 per cent market share in the quick e-commerce sector, up from 15% in March 2022. Blinkit leads the market with nearly 40 per cent, while the rest is held by Instamart.

"We have made 75 per cent of our stores fully profitable, and we aim to maintain this trajectory while expanding into new cities," Palicha added.

(with PTI inputs)