📈 Rapid Funding and Valuation Growth
Zepto secured $350M in its third funding round in six months, maintaining a $5B valuation. Investors include Motilal Oswal, Mankind Pharma, and celebrities like Amitabh Bachchan. Since June, the Mumbai-based startup has raised over $1.35B. This latest round is the largest fully domestic primary funding in India, reflecting Zepto’s effort to reduce foreign ownership ahead of its planned IPO in 2025.
🚚 Dominance in Quick-Commerce
Zepto handles 7M daily orders across 17+ cities, with projected annualized sales of $2B. India’s quick-commerce market, worth $6B in 2024, is forecasted to hit $42B by 2030. While the sector sees fierce competition from Blinkit, Instamart, and BigBasket, Zepto’s focus on rapid delivery keeps it ahead. However, its $35M monthly burn highlights the cost of maintaining this edge.
⚠️ Impact on Traditional Retail
The rise of quick commerce has shuttered 200K neighborhood shops, with major cities losing 90K in the past year. Critics warn of devastating impacts on local economies, with calls for regulatory intervention. The All India Consumer Products Distributors Federation argues these platforms prioritize unsustainable growth at the cost of small retailers.
🛑 Regulatory Challenges Loom
Indian rules mandate majority domestic ownership for inventory-based e-commerce models. Zepto, like its competitors, faces scrutiny over compliance. CEO Aadit Palicha emphasizes the platform’s job creation and consumer benefits, but regulatory uncertainty could stall growth. As Zepto eyes an IPO, adapting to policy changes remains critical.
Is quick commerce hurting Indian small businesses?
