Zepto sales may overtake DMart in next 18-24 months: CEO Adit Palicha | Startups

Palicha says Zepto's revenue could exceed Rs 2.4 trillion in the next 5-10 years

Adit Palicha, CEO of Zepto
Adit Palicha, CEO, Zepto

Aryaman Gupta New Delhi

Quick-commerce unicorn Zepto's sales could potentially overtake offline retail major DMart in the next 18-24 months, while the former's top line could exceed Rs 2.4 trillion in the next 5-10 years, co-founder and chief executive officer (CEO) Adit Palicha said on Saturday.

Speaking at the 7th JIIF Foundation Day event in New Delhi, Palicha said, “DMart is a $30 billion company and our sales are only 4.5 times our size. If we are able to execute well, we will continue to grow 2-3 times every year and possibly cross it in the next 18-24 months.”

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“If we execute it well, we can take this business from Rs 10,000 crore today to potentially Rs 2.5 trillion in the next 5-10 years,” he said.

Palicha said the company's focus will be on the 50-75 million households in the top 40 cities of the country, which contribute significantly to grocery and daily essential shopping in the country.

They estimate that the Indian grocery market will be worth $850 billion by FY29, with these households contributing $400 billion.

“Grocery is bigger than all other categories offered by Amazon and Flipkart combined. If you look at electronics, apparel, furniture, you put everything together, and double it, it is still not as big as grocery and household essentials,” he said.

He said the instant commerce company has gone from zero to Rs 10,000 crore in sales in less than three years, while Flipkart achieved this feat in four years.

The 21-year-old founder’s comments come soon after Zepto raised a big Series F funding round of $665 million at a valuation of $3.6 billion, Business Standard had earlier reported.

The round was led by existing investors StepStone Group, Nexus Venture Partners, Glade Brook Capital, Goodwater, and Lachy Groom. Meanwhile, new investors, Avenir Growth, Lightspeed Venture Partners, and Avera, have also joined the list.

The fundraise comes at a time when Zepto is gearing up for an initial public offering (IPO) in about 12-15 months and is looking to turn profitable ahead of its public listing.

The company currently operates around 350 dark stores across the top 10 cities in India and plans to expand to another 10 cities and increase its store count to 700.

This was Zepto’s second major fundraise in 10 months.

In August last year, Zepto raised $235 million in a Series E funding round at a valuation of $1.4 billion and became a unicorn, ending a long-running drought.

The round was led by StepStone Group, a Baltimore-based institutional asset manager, which is also a limited partner (LP) of existing investor Nexus Venture Partners.

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