Zepto eyes IPO in 2025 after securing $350 million funding

Quick commerce company Zepto, known for its 10-minute delivery model, is poised for significant growth following its recent round of USD 350 million funding. The investment, led by Motilal Oswal’s Private Wealth division, has come from prominent domestic investors including Indian HNIs and family offices. The funding marks a key step towards Zepto’s goal of becoming a fully Indian-owned entity, with plans to shift its domicile from Singapore to India by FY26.

The company’s co-founder and CEO Aadit Palicha has expressed optimism about the road ahead, with the possibility of a public listing in 2025. According to PTI, Zepto's Co-founder and CEO Aadit Palicha said that the company is confident it will be PAT-positive in the next financial year, signalling growth and profitability. The platform's rapid expansion, with plans to extend its presence to over 50 cities by next quarter, is backed by a growing customer base and a sharp focus on scaling its business.

Zepto’s 10-minute delivery service has garnered attention for its efficiency in delivering groceries and daily essentials at scale, something Palicha claims is unmatched globally. The company has created significant job opportunities, with estimates suggesting that over 4.5 lakh jobs have been generated in just three years, including higher-paying roles compared to the informal sector.

The platform has also diversified its offerings, with Zepto Cafe contributing positively to the business. The café’s success, which is said to be margin-additive, has helped increase customer retention and app engagement, a move that has boosted overall sales.

Despite facing criticism regarding the impact of quick commerce on traditional kirana stores, Palicha has firmly refuted claims that the industry disrupts or harms small retailers. He emphasised that the quick commerce sector has contributed to job creation and economic growth, highlighting that the rise of online delivery services has not come at the expense of kirana businesses, which continue to thrive alongside newer formats of commerce.

Its rapid growth trajectory also includes a target to reach a top line of USD 1 billion by mid-2024, with expectations to continue expanding. The company's strong performance and its focus on expanding its footprint in the Indian market signal its growing influence in the competitive quick commerce space, where players like Blinkit and Swiggy Instamart also vie for market share. However, Palicha sees competition as an opportunity, noting that the market remains large and room exists for all players to grow.

The company is on track to reach profitability sooner than expected, with the typical timeline for profitability shrinking from 23 months to just eight months for many of its stores. With continued focus on growth and scalability, Zepto aims to solidify its position as one of India’s fastest-growing consumer companies.

As Zepto prepares for its next phase, the shift to full Indian ownership and a potential IPO in 2025 marks the beginning of a new chapter in the company’s journey, positioning it for long-term success in the evolving Indian e-commerce landscape.