Zepto Surpasses $1.2B in Annual Sales
Zepto, an Indian quick-commerce startup, has surpassed $1.2 billion in annualized sales within 29 months of its establishment, according to a report by Goldman Sachs.
Zepto is a quick-commerce startup operating in India. Similar to competitors like Blinkit and Swiggy Instamart, Zepto offers rapid delivery services for various items including groceries and electronics.
Despite being a relatively new player, Zepto has rapidly gained market share, positioning itself as the second-largest player in the market. The startup, which became a unicorn last year, operates in seven major Indian cities and utilizes a network of over 300 dark stores or micro-fulfillment centers to ensure swift delivery to customers.
Zepto’s financial performance is on an upward trajectory, with the company expecting to break even at the EBITDA level within the next quarter. The startup anticipates a steady-state contribution margin of 12% and a steady-state EBITDA margin of 7%. Moreover, newly opened dark stores are becoming profitable within nine months, indicating the efficiency of Zepto’s operational model.
The rapid rise of instant-commerce companies like Zepto is reshaping India’s retail landscape. These startups not only compete with traditional supermarkets and local stores but also pose a significant challenge to e-commerce giants such as Flipkart and Amazon.
India’s quick-commerce sector has witnessed explosive growth, surpassing the $5 billion mark. This sector now captures over half of the online grocery market, rivaling established players like Dmart.
Future Outlook
Zepto believes that quick-commerce platforms have a strategic advantage over other forms of organized grocery retail, thanks to their proximity to customers and competitive pricing, diverse assortment, and quality benefits.
In conclusion, Zepto’s rapid ascent to $1.2 billion in annualized sales underscores the growing dominance of quick-commerce in India’s retail landscape, setting the stage for further disruption in the sector.
