Aadit Palicha, the CEO of Zepto, is optimistic that the top rapid commerce firm will become profitable by the upcoming fiscal year and that Zepto's ambitions for an initial public offering (IPO) would probably come to fruition in 2025.
Zepto, a leader in quick commerce, claims that it is headed straight for profitability in the upcoming fiscal year (2025–2026) and complete Indian ownership. This follows its most recent round of $350 million in fundraising from well-known domestic investors. Aadit Palicha, the CEO and co-founder of Zepto, is particularly hopeful about a potential initial public offering (IPO) in 2025.Palicha vehemently refuted claims that the fast commerce model is upsetting and impeding the expansion of conventional kirana shops in an interview with news agency PTI. According to him, these and other "narratives" are not supported by actual statistics and undervalue the "net positives" of the sector, such as the creation of jobs.
The CEO of Zepto is hopeful about plans for an IPO in 2025.
Leading financial institutions, family offices, and Indian HNIs contributed to the most recent fundraising round. Only Motilal Oswal's Private Wealth division was in charge of it. According to Palicha, the round's sole goal was to boost domestic ownership in preparation for an IPO that is anticipated to occur in 2025.
"That's our ambition...of course, capital markets may change, but for now, we're optimistic that if the business continues to perform as well, we will go public in calendar 2025," the chief executive officer of Zepto told PTI. Palicha added that Zepto and other fast 10-minute delivery models had created lakhs of jobs, added wages, and produced overall "value" for both workers and consumers.
He claimed that the rapid commerce model used on a large scale for everyday commodities like groceries is unprecedented and unrivaled worldwide, highlighting the special advantages of Indian technology. Palicha, armed with statistics and data, denied accusations of predatory pricing made by a group of retail distributors, claiming that 99.8% of the products offered on the platform were above cost.
"So the predatory pricing allegation similar to the other 'data-free narratives' created about quick commerce over the past few years doesn't actually stack up, and we are happy to have anyone who doesn't believe it to come to our office and take a look at our books because it is a mathematical fact," he explained.
Palicha stated that India is expected to have an increase in consumption of more than $200 billion, citing certain estimates. "The Kirana store cannot possibly be closing economically. He stated, "We are expanding, but so are the Kirana stores and other forms of business.
The claims on exploitative pricing, he said, "do not stack up" either. "The reason why such narratives are particularly dangerous is because it actually hides from all the net positive we've done for the country," he stated.
He cited the creation of 4.5 lakh employment in the fast commerce sector in only three years as an example, noting that average salaries of more than ₹20,000 are "meaningfully higher" than those of positions in the unorganized sector.
The fact that this is Indian technology and actual infrastructure is crucial. I think it's great, and we should be proud of the new technology from India. You can push a button on your phone and have daily necessities like rice and shampoos delivered in ten minutes nowhere else in the world at scale," he said. Palicha stated that Zepto is proceeding quickly with its preparations to relocate its headquarters from Singapore to India and that every box has been or will soon be checked.
Given how quickly its business is expanding, Zepto hopes to reach more than 50 locations by the end of the next quarter, expanding its current footprint to more than two dozen places. "We reached a billion dollars in the top line in April and May of 2024. That has already multiplied for us.
Palicha stated that India is expected to have an increase in consumption of more than $200 billion, citing certain estimates. "The Kirana store cannot possibly be closing economically. He stated, "We are expanding, but so are the Kirana stores and other forms of business.
The claims on exploitative pricing, he said, "do not stack up" either. "The reason why such narratives are particularly dangerous is because it actually hides from all the net positive we've done for the country," he stated.
He cited the creation of 4.5 lakh employment in the fast commerce sector in only three years as an example, noting that average salaries of more than ₹20,000 are "meaningfully higher" than those of positions in the unorganized sector.
The fact that this is Indian technology and actual infrastructure is crucial. I think it's great, and we should be proud of the new technology from India. You can push a button on your phone and have daily necessities like rice and shampoos delivered in ten minutes nowhere else in the world at scale," he said. Palicha stated that Zepto is proceeding quickly with its preparations to relocate its headquarters from Singapore to India and that every box has been or will soon be checked.
Given how quickly its business is expanding, Zepto hopes to reach more than 50 locations by the end of the next quarter, expanding its current footprint to more than two dozen places. "We reached a billion dollars in the top line in April and May of 2024. That has already multiplied for us.
As one of the fastest-growing consumer companies in the nation at the moment, we are expanding quickly and multiplying on a scale of billions of dollars in the top line. We (will) soon reach another significant milestone on reaching another enormous top-line threshold," he continued.
According to Palicha, a growing number of stores are becoming successful, and within 23 months, profitability deadlines have decreased to eight months. We're going to be PAT positive in the upcoming fiscal year. We have a lot of confidence, which should give the markets a good indication," he stated. Profit after tax is shortened to PAT.
According to Palicha, the company is experiencing "phenomenal results" with Zepto Cafe, which is boosting client retention and stickiness for the main business and adding to the profit. "Zepto Cafe alone will generate ₹1,000 crore in revenue because customers adore it." We're seeing increased frequency and retention in our core business as a result.He remarked, "People are opening the app more than once."
He stated that competition is a "good thing" and emphasized that the market is "genuinely quite large" in response to rivals like Blinkit and Swiggy Instamart. "In a nutshell, we feel happy about it since there is plenty of room for everyone, and we just concentrate on our own execution... We believe the market is sufficiently vast, and we don't give competition any thought," he stated.
According to Palicha, a growing number of stores are becoming successful, and within 23 months, profitability deadlines have decreased to eight months. We're going to be PAT positive in the upcoming fiscal year. We have a lot of confidence, which should give the markets a good indication," he stated. Profit after tax is shortened to PAT.
According to Palicha, the company is experiencing "phenomenal results" with Zepto Cafe, which is boosting client retention and stickiness for the main business and adding to the profit. "Zepto Cafe alone will generate ₹1,000 crore in revenue because customers adore it." We're seeing increased frequency and retention in our core business as a result.He remarked, "People are opening the app more than once."
He stated that competition is a "good thing" and emphasized that the market is "genuinely quite large" in response to rivals like Blinkit and Swiggy Instamart. "In a nutshell, we feel happy about it since there is plenty of room for everyone, and we just concentrate on our own execution... We believe the market is sufficiently vast, and we don't give competition any thought," he stated.
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