Zepto Expands Nationwide Amid $5 B Valuation Surge

Aadit Palicha, co-founder and CEO of Zepto, announced on Monday that the quick commerce company is expanding its business across India, following a successful capital raise to support this growth. Speaking at the NDTV World Summit 2024 in New Delhi, he highlighted the company’s shift toward more aggressive expansion after a period of cautious growth due to limited financial resources.

“At this point, we are expanding very meaningfully… In the past 18 months or so, we have been slow on geographic expansion, but in existing markets, we have grown very rapidly, largely because capital was difficult to come by,” Palicha said. “Now we have proven the economics to a great level and have been able to raise capital and expand very aggressively, geographically.”

In the past three months, Zepto has launched operations in cities such as Nashik, Chandigarh, Jaipur, Lucknow, and Coimbatore, marking a significant expansion step. The company’s valuation now exceeds USD 5 billion. Zepto, founded by Palicha in 2021, offers quick commerce services delivering groceries, fruits, vegetables, electronics, and more within minutes.

Palicha began his entrepreneurial journey at 17 and later dropped out of Stanford University to focus on Zepto. Reflecting on his startup’s rapid growth, he noted that the customer-centric approach has been key: “At Zepto, we are a customer company… Most people told us that ordering multiple times has to be seamless, as easy as going downstairs and picking up fruits and vegetables or day-to-day packaged foods.”

Zepto’s first warehouse, known as a “dark store,” was launched in Mumbai’s Bandra. Today, the company has around 50,000 delivery partners, with numbers increasing as it expands into more cities. Palicha also addressed the logistical challenges in India, explaining that while the targeted delivery time is 10 minutes, actual times may vary based on traffic and weather conditions.

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In closing, Palicha expressed the company’s ambition to generate large cash flows, which will compound quickly and contribute to strengthening India’s startup ecosystem.