Zepto is currently in a position similar to where Amazon was in the late 1990s and early 2000s, with the opportunity to achieve a valuation as large as $50-80 billion if execution is done right, CEO and co-founder Aadit Palicha said at the Moneycontrol Startup Conclave 2024 on August 9.
"We are where Amazon was in the late 90s, early 2000s. We are sitting on the right macro and the right business model to create something that is very large. And if we execute well, we are sitting on a $50-80 billion outcome," he said.
"It is largely just execution so it is not guaranteed. There were also companies in the past who could have done that but couldn't execute it. We are going to be razor sharp with focus. We don’t have any plans for the next many years to get into adjacent businesses," he added.
The Mumbai-based quick commerce unicorn has been on a fundraising spree over the past year. In August last year, it raised $231 million at a valuation of $1.4 billion. Recently, it raised $665 million at a valuation of $3.6 billion, as investors look to double down on the booming quick commerce sector in India.
Additionally, it has attracted investor interest for another $250 million in a new round that values the company at around $4.6 billion. This round, which could reach $400 million in size, may see private equity giants like General Catalyst and KKR joining the company's cap table.
Further, it has drawn investor interest for an additional $250 million in a fresh round that values the company at about $4.6 billion. The round, which could touch $400 million in size, could see private equity majors like General Catalyst and KKR joining the company's cap table.
“Total addressable urban retail market for quick commerce platforms (including both grocery and non-grocery) is c.US$300 billion. Top 50 cities make up 40%-45% of India’s c.500 million urban population, implying c.$150 billion in real TAM for quick commerce platforms (as of CY23), growing at 10%-12% annually,” Goldman Sachs said in a research note in April.
Zepto wants to focus on the top 50-75 million households in the country's top 40 cities as they make up the lion's share of grocery and daily essential purchases of the country. The Indian grocery market would be worth $850 billion by FY29, of which these top bracket households would account for $400 billion, according to the company.
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