Zepto started in 2021 as a quick commerce startup in Mumbai and became the fastest unicorn and eyed over a 3 billion dollar valuation with its zealous fundraising plans. Also, with growth plans of 140% year on year for their mature stores and EBIDTA to reas 13 to 14% from 6 to 7%, Zepto shares are in high demand in the grey market. This is because Zepto is the only independent quick e-commerce platform that delivers groceries in ten minutes and an iPhone. It is a significant reason that Zepto, within less than 30 months of its inception, surpassed annualised sales of over 1 billion dollars and became the third largest quick commerce company, with over one million customers using it in India. Hence, buying a Zepto share price rise today is justified, and investors can hope for higher yields.
Zepto to Become the Third Largest Quick Commerce Company in Three Years
One of the rare positive outcomes of the pandemic is the rapid development of quick commerce in India. People’s fear of going out to buy essentials is a significant reason, as quick commerce companies like Blinkit of Zomato and Swiggy Instamart are doing huge business. Here, two Stanford college dropout teenagers from Mumbai started Zepto during the second wave of the deadly coronavirus to have over 20% of the quick commerce market in India. Many Investors relying on its high potential invested massive amounts to make Zepto the first unicorn in 2023. Despite the dull performance of ecommerce companies in 2023, Zepto shines like a diamond to increase sales and revenue. Hence, the Zepto share price today is a suitable investment for getting high returns, as there are hopes of an IPO soon with a continuously increasing valuation.
Zepto Unlisted Shares to Yield High Returns with Its Unique Business Model
Gone are the days of people not only in developed countries going to supermarkets to buy groceries, vegetables, fruits and others. Even in India, the neighbourhood Kirana stores are facing an existential threat because of the rapid development of the quick commerce industry. Up to 50% of the e-commerce sales of FMCG companies now happen through quick commerce firms. With over a 3 billion dollar grocery market, which is growing over 37% CAGR in India, Zepto is the newest quick commerce company to capitalise on the fast-growing quick commerce market in India to deliver goods within 10 to 20 minutes in many cities. It is the quick-growing grocery delivery platform only next to Zomato’s Blinkit and Swiggy’s Instamart to have a 20% market share. The significant reason for this is the quick delivery of groceries and furnishings to mobile phones and others. Also, Zepto charges Rs. 2 for grocery deliveries and Rs. 5 to 28 for late-night deliveries to increase its revenue stream. Hence, buying a Zepto share price at the current level will give investors a high ROI or return on investment in the short and long term. The following are a few fantastic features of the unique Zepto business model that will help increase its sales, revenue, and profit in the short and long term.
The above facts about the unique business model and its many fantastic features make Zepto’s share price today attractive to yield high returns.
A Comparison of Zepto with Other Major Quick Commerce Players
Many may wonder how only a three-year-old Zepto, a grocery-delivering quick commerce company, became a unicorn and the third largest in the industry. Its unique business model allows it to deliver groceries and other items quickly and safely to customers’ doorsteps. The following are a few comparisons of its major rivals, Blinkit of Zomato and Instamart of Swiggy, to be India’s third largest player in the quick commerce industry.
Aspect | Details |
Company Timeline | Zomato commenced operations in 2008, Swiggy followed suit in 2014. Both ventured into the food delivery sector early and expanded into quick commerce through Blinkit and Instamart. In contrast, Zepto emerged in 2021, posing formidable competition with its unique business approach. |
Market Share | Blinkit and Instamart each hold approximately 40% of the quick commerce market, while Zepto, though a later entrant in 2021, vies for the second position with a 20% market share. |
Dark Stores | Blinkit operates 400 dark stores, and Instamart manages 450. Despite its 20% market share, Zepto boasts over 350 dark stores, with more than 200 of them yielding positive EBIDTA, showcasing operational efficiency. |
Growth Performance | Zepto achieved remarkable growth, surpassing competitors Blinkit and Instamart with a business expansion of over 100% and enhancing its EBITDA by over 600 basis points. |
Funding & Valuation | Securing substantial funding exceeding $340 million within two years, Zepto swiftly ascended to unicorn status. With ambitious fundraising plans, it anticipates a valuation surge to over $3 billion and aims to launch an IPO in the near future. |
Future Prospects | With the grocery market projected to exceed $25 billion and quick commerce expected to hit $6 billion by 2025, Zepto is poised for exponential growth. Bolstered by enhanced funding, infrastructure, logistical, and technological capabilities, it aims to elevate from a tertiary player to the second-largest, offering lucrative investment opportunities. |
List of Fundraisings in the Past and Future to Raise Zepto Share Price
Quick commerce companies need massive funding to deliver thousands of goods to customers’ doorsteps within a few minutes. For competitors like Blinkit, Instamart and others, there were well-established companies like Zomato and Swiggy with huge corpus to do it effectively. However, for Zepto, an e-commerce startup started by teenage college dropouts, outs are challenging. During the brutal second pandemic wave, it was a difficult task, and the Zepto promoters changed to opportunities only because of the following, among other fundraisings in the past and future.
Year |
Investment Details |
2022 | Zepto secured over $200 million in a Series D funding round led by Y Combinator Continuity Fund, an American technology startup accelerator. |
2023 | Zepto attained unicorn status in India after raising $200 million in a Series E funding round backed by StepStone Group and Goodwater Capital. |
Ongoing | Zepto plans to raise over $300 million to triple its valuation from $1 billion to $3 billion and intends to launch an IPO shortly. |
The above fundraising in the past and future, along with IPO plans, will give the Zepto share price NSE high returns in the short and long term.
* Ratio is calculated based on latest financial & current share price.
(All Amount in INR Millions)
(All Amount in INR Millions)
(All Amount in INR Millions)