Zepto on track for $1 billion run rate in annual sales value

Zepto on track for $1 billion run rate in annual sales value

Quick commerce unicorn Zepto is on track to reach a $1 billion run rate in annualised sales value within the next couple of quarters, its co-founder and chief executive officer Aadit Palicha said in a LinkedIn post.

“We’re on track to hit Ebitda positive in 2024, which will make us one of the fastest venture-backed consumer internet companies in India to hit profitability (just ~36 months from launch),” Palicha said late on Sunday.

For comparison, rival Zomato-owned Blinkit hit $1 billion gross order value run rate early in 2023 and per HSBC, the company is well on track to hit $2 billion in GOV run rate by FY25. Blinkit, formerly Grofers, was founded in late 2013.

Zepto’s co-founders had previously said the company plans to go for a public listing in early 2025, after maintaining Ebitda profitability for at least three quarters. They plan to use the funds to deepen their network in existing markets, set up more dark stores and invest in newer offerings such as its cloud kitchen setup Zepto Cafe.

For December, the platform’s monthly transacting users more than doubled year-on-year to 4.04 million, boosted by record sales of items such as snacks, ice creams and ice cubes on New Year’s Eve.

Not just Zepto, Blinkit also saw record numbers on New Year’s Eve. Albinder Dhindsa, co-founder and chief executive officer of Blinkit, said on LinkedIn the platform hit its highest ever orders in a day and per minute on Sunday. Items such as lipsticks, soft drinks, tonic water, shot glasses and chips saw record sales on New Year’s Eve on Blinkit.