Top line can grow to Rs 2.5 lakh Cr in 5-10 yrs if we execute well: Zepto CEO
Zepto Co-Founder and CEO Aadit Palicha said the grocery and household essentials market was around $650 billion in India in FY23 and is growing at 9% CAGR, and is expected to get to about $850 billion by FY29.
Quick commerce unicorn revenue can grow multifold to Rs 2.5 lakh crore in 5-10 years if the company is able to execute the business well, a top company official said on Saturday, July 6.
Speaking at the 7th JIIF Foundation Day, Zepto Co-founder and CEO Aadit Palicha said grocery and household essentials are the mother of all categories that are sold on leading ecommerce platforms Flipkart and Amazon in India.
He said the grocery and household essentials market was around $650 billion in India in FY23 and is growing at 9% CAGR, and is expected to get to about $850 billion by FY29.
"If we execute well, we can realistically take this business from Rs 10,000-plus crores in top line today to potentially to Rs 2.5 lakh crore of top line over the next 10 years or next five years," Palicha said.
"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 said.
The company's revenue has grown over five-fold to over Rs 10,000 crore in FY24 from about Rs 2,000 crore in FY23. Last month, Zepto raised $665 million in an investment round that valued the firm at $3.6 billion, almost triple what it was worth a year ago, and is preparing to list soon.
The three-year-old startup raised $665 million (about Rs 5,550 crore) from new investors, including New York-based private equity firm Avenir Growth Capital, venture firm Lightspeed, and Avra Capital, a new fund started by former Y Combinator Continuity head Anu Hariharan and Andreessen Horowitz.
Existing investors, including Glade Brook, Nexus, and StepStone Group also participated.
Palicha said the biggest challenge for the company is to hire people with the right attitude.
The startup plans to double the warehouses used to deliver groceries within 10 minutes in a radius of two kilometres to more than 700 by March 2025 by reinvesting sales from mature stores to fund the expansion.
Zepto has about 29% market share in 10-minute grocery delivery service (known as quick ecommerce), up from 15% in March 2022. Blinkit is the market leader with nearly 40% and the rest is with Instamart.
"We have been able to turn 75% of our stores fully profitable and so we want to continue that trajectory even as we are expanding into new cities," Palicha said.