**Zepto Expects 150% Growth in the Fast-Growing Quick Commerce Market in India**
Indian delivery startup Zepto is anticipating impressive growth of 150% in the next 12 months, according to co-founder Aadit Palicha. This projection indicates that the quick commerce market in India, which is rapidly gaining traction, shows no signs of slowing down. Palicha shared this information during a call organized by an investment bank, which was attended by representatives from prominent investment firms such as Abu Dhabi Investment Authority, Temasek, GIC, and Invesco.
Zepto’s current annualized sales run rate has surpassed $1.5 billion, and Palicha believes that a growth rate of approximately 150% would push its sales to over $3.5 billion. Competing with Zomato’s Blinkit, SoftBank-backed Swiggy Instamart, and BigBasket, Zepto differentiates itself by offering 10-to-15-minute delivery services. BlinkIt’s current run rate stands at around $2 billion.
**Quick Commerce’s Surge in India’s Unorganized Retail Market**
Quick commerce is gaining significant popularity in India’s $1.1 trillion unorganized retail market. Zepto, BlinkIt, Swiggy, and Tata-owned BigBasket’s BB Now are collectively set to achieve annual sales exceeding $6 billion, surpassing the overall e-commerce sales of approximately $50 billion. BigBasket, a leading online grocer, recently announced its complete pivot to quick commerce by delivering groceries to customers within a few hours.
While the Indian e-commerce market is growing at a rate of about 11% to 12% annually, quick commerce has experienced growth of over 100% each year for the past three years. This indicates that quick commerce firms are gaining market share from larger e-commerce companies, as noted by Rahul Malhotra, an e-commerce analyst at Bernstein.
**Expanding Quick Commerce Beyond Major Urban Areas**
During the call, investors raised questions about the potential for quick commerce to expand beyond India’s top cities, as these apps currently operate primarily in major urban areas. Palicha responded by stating that quick commerce is not limited to Tier 1 cities and that there is a significant opportunity in Tier 2 and 3 cities, regardless of market sentiment. This suggests that quick commerce has the potential to reach a wider consumer base in India.
**Zepto’s Impressive Funding and Expansion Plans**
Palicha also revealed during the call that Zepto has raised $1 billion in the past 90 days, providing the company with a substantial war chest to fuel its aggressive expansion plans. With a current valuation of $5 billion, Zepto is finalizing a $340 million funding round led by General Catalyst. In June, the startup closed a $665 million funding round, further solidifying its position in the quick commerce market.
In conclusion, Zepto’s projected growth of 150% in the fast-growing quick commerce market in India highlights the increasing popularity of this sector. With quick commerce firms like Zepto, BlinkIt, Swiggy, and BigBasket collectively expected to achieve annual sales exceeding $6 billion, it is evident that quick commerce is gaining market share from larger e-commerce companies. Furthermore, the potential for quick commerce to expand beyond major urban areas presents a significant opportunity for growth. With substantial funding and aggressive expansion plans, Zepto is well-positioned to capitalize on the booming quick commerce market in India.
