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Can Zepto beat DMart - Avenue Supermarts Ltd in sales? Zepto CEO Aadit Palicha believed they would surpass D-Mart within 18 to 24 months. Thus, the Indian food market is valued at $650 billion in FY23 and is estimated to grow to $885 billion by the end of FY29, with a growth rate of 9%. Now, D-Mart, a $30 billion company, has about 4.5 times Zepto’s sales. If Zepto continues to perform well and grow 2-3 times a year, it could overtake D-Mart in the next 18-24 months. Zepto plans to focus on the top 40 cities in the country, targeting 50 to 75 million households. The grocery market is bigger than all categories with Amazon and Flipkart service and Zepto being the mother of all categories. We know they had a crazy trip over the past 3 years. They have gone from zero to ₹10,000 crore in less than 3 years. It is the fastest company in Internet India to do so. Flipkart did it in 4 years. It was completed in 2.5 years. They aim to grow from ₹10,000 crore to ₹2.5 lakh crore in the next few years. It plans to expand by increasing the number of cities in which it operates with the aim of joining the top 40 cities. This expansion plan will increase their revenue. Zepto, meanwhile, offers more, driving up the cost of ordering. Zepto recently raised $665 million in Series F funding at a $3.6 billion valuation. It also plans to hire 500 new employees over the next 12 to 15 months and plans to go public with the IPO. Founded in 2021 by Aadit Palicha and Kaivalya V., Zepto takes 5.5 lakh orders a day through a network of 350 dark stores across 10 cities in India. The company operates a network of cloud stores to deliver groceries in under 10 minutes. Zepto’s rapid growth, intelligent expansion, and innovative ideas make it a strong competitor in the food market. If Zepto continues to excel and grow, it can not only compete with big brands like D-Mart but can surpass them very quickly. 👉 Follow Naresh Purohit 🇮🇳 LinkedIn Guide to Creating Guide to Networking for LinkedIn #Zepto #DMart #GroceryMarket #StartupGrowth #BusinessExpansion #Funding #IPO #Innovation #Ecommerce #IndiaGrowth

#quickcommerce in India continues to heat-up. Swiggy IPO is imminent. Zepto is on the way after staying patient and not selling off early by being focused on #geography and #aov. Now, Zomato is looking to raise more funds to be ready to stay ahead of the competition by building on their successes and being proactive as opposed to reactive - which may be more costly.bigbasket.com has already the move to increase their average order values and making more efficient use of their larger #warehousing space to accommodate #electronics #householdgoods more #fmcg and be a bit more of a #marketplace if that's what some consumers are looking for nowadays. The conversation had been heading toward #realestate when it comes to quick commerce for some time. Now, every one is fighting for space to be able to ramp up their fulfillment, tighten up their #procurement strategy, and deliver as fast as possible. The locations for #darkstores and #fulfillment centers are super crucial. There is more thought being put in to it than just having a location in key localities. These companies are optimizing space and optimizing exactly where their physical infrastructure is located down to which street corner, side-lanes, potential traffic bottlenecks, thru-roads, you name it. The questions are now about: -Is the dark store on a one way or two way road? -Is there easy direct access to a main drag like 100 Feet Road in #indiranagar #Bangalore or Link Road in #Mumbai? -Are there straight-line/grid layouts nearby to avoid high-traffic roads or lanes? -If the delivery partner can get to the main road easily, is there a traffic signal that usually requires a lot of wait time? -Even if there is direct access to multiple east-west/north-south main roads, are there road dividers in-place that don't allow for easy crossing to the other side? *this is a very interesting scenario that you can see being solved on the ground already. Sometimes you may wonder why there are dark stores or physical stores so close to each other. This is one of the reasons apart from volume/population. All of this is crucial to being ahead of the competition and remaining asset-light to keep AOV up! Hari Menon Zomato India Blinkit Deepinder Goyal Albinder Dhindsa Sriharsha M. DMart - Avenue Supermarts Ltd #transportation #logistics #urbanplanning #urban #rural #road #traffic #location #business #street #motorcycle #ev #scooter #bike

Who owns the Q-commerce race in India 💡? Yes, its Zepto. Zepto has been reportedly generating significant revenues, with some estimates (available in public domain) suggesting monthly revenues in the range of INR 150-200 Cr (about $18-24 Mn). Days back, the cofounders Aadit Palicha & Kaivalya V.'s platform took home a whopping $350 Mn, Zepto's third fundraise in just six months. Palicha in his interview, highlighted a few points those stood out. ➡️ Cost arbitrage: Relying on a super-meticulous execution & excellence approach, Palicha talked about how cost arbitrage proving a game changer in smaller cities, busting the #myth that #qcommerce is an urban phenomenon. Here, building a dark store, involving delivery professionals etc need less cost. Hence, the profitability per store incurs sooner than in metros. ➡️ Per store profitability than market share: The focus is on achieving per store profitability than capturing sizable market share or #profitability. He explained, achieving 1000 orders per day in cities including Vellore, Nashik, Kota etc takes lesser time than Mumbai. Because, people there don't get this wide range of 13, 000 to 14, 000 SKUs, hence, this popularity. ➡️ Disciplined investment: Zepto launched Zepto Cafe recently offering 10 Minutes food delivery options to Delhi, Bengaluru & Mumbai. And Palicha said they are investing hundred of crores in building this. To me its obvious that the platform is going to play its existing quick commerce customer base. Its no brainer, consumer who wants groceries within 10 minutes, would relish their evening snacks or breakfast coming along. So, yes, absolute brilliance over there 💪. ➡️ Quick commerce is not replacement for Kirana stores. We experienced it when #ecommerce had hit the consumption pattern. Now, its q-commerce that is taking the blame. However, my POV resonates what Plaicha explained. He said India's #grocey market has reached $46 Bn, hence if q-commerce is taking some $1 Bn, the rest $45 Bn is going to the Kirana store. So, no single business format replacing another. For complete & better insights you can tune into the interview; however I invite your thoughts in comments. Share what more is required in #qcommerce than execution, technology and excellence 😊. More so while we already have Flipkart Minute, Amazon is rolling out is q-commerce play "Tez" by end of next month. Its interesting to see how the q-commerce segment is shaping in coming times 🔥. #startupsuccess #onlinegrocery #lastmiledelivery #startupfounders #startupfunding #fundraise

The #QuickCommerce Quandary: #Zepto and #Blinkit’s Unseen Threat to #Kiranas In the bustling streets of #India, where the traditional kirana stores have long stood as the cornerstone of #retail, a new wave of quick-commerce firms like Zepto and Blinkit are reshaping the landscape in unprecedented ways. Unlike #BigBazaar and #Amazon, which introduced the Indian consumer to the concept of #hypermarkets and #onlineshopping respectively, Zepto and Blinkit have tapped into something far more intrinsic to the Indian shopper: the need for #instantgratification. The #HumanTouch in a Digital World: At first glance, it’s easy to overlook the impact of these quick-commerce entities. However, kirana store owners across major cities are feeling the heat as their #salesdwindle in the face of this rapid rise. The secret sauce that once belonged solely to kiranas—the convenience of #doorstepdelivery and #credit—is now being served up by these agile newcomers. #DataSpeaks: The Consumer #ByuingBehavior in India is undergoing a seismic shift. The #valueseeking mindset is giving way to #convenience-seeking, with #weekly small-sized #purchases taking precedence over #larger #monthlyhauls. This #trend is a #drivingforce behind the #quickcommerce market #boom, with companies like Zepto and Blinkit at the helm. #Kiranas #UnderSiege: A Threat or a Wake-Up Call? The threat to kiranas is real. #Quickcommerce firms offer not just #speed but also #discounts—something traditional stores struggle to match. Yet, this isn’t just a tale of doom and gloom for kiranas. It’s a wake-up call for adaptation and evolution. Peering Into the #Future: Kiranas’ Countermove, the future isn’t bleak for kiranas. They are poised to become more connected, digital, and engaging. With technology on their side, they can leverage their locational advantage and offer faster, frictionless service. Initiatives like #ONDC (Open Network for Digital Commerce) could #herald a new era for these #momandpop stores. At last its worth noting that, while Zepto and Blinkit present an unseen threat to kiranas by mastering what Big Bazaar and Amazon could not—the art of #instantdelivery—they also pave the way for an evolution in consumer buying behavior and potentially, the #resurgence of kiranas in a new digital avatar. #QuickCommerceRevolution; #KiranaComeback; #DigitalIndiaRetail; #ConsumerBehaviorShift; #InstantGratificationEconomy #TechSavvyKiranas #ONDCFuture

Quick Commerce is shaking up the retail industry, but are the traditional mom-and-pop stores really in trouble? A cursory look at any neighbourhood will reveal that small shops have only increased in number, with many repositioning their merchandise to improve margins. Some have even created their own brands, like Mumbai's Avaraya stores, which now boasts over 8 locations and never seems to lack business. They sell their own high-margin items to compensate for low-margin FMCG products and have leveraged delivery services like Zomato and Swiggy to increase reach. In India's diverse market, every model has its place. Writing off any model could be at the peril of the seller. Check out more on Quick Commerce in the Economic Times. #QuickCommerce #RetailIndustry #SmallBusiness #Entrepreneurship

Zepto can become bigger than DMart in 18-24 months: Aadit Palicha "DMart is a $30 billion company and they are only 4.5X our size in sales. If we continue to execute well, we will continue to grow 2-3X every year. And potentially surpass them in next 18-24 months which is an exceptionally well executed consumer company," said Palicha. He said that Zepto would focus on the top 50-75 million households in the country's top 40 cities as they make up the lion's share of grocery and daily essential purchases of the country. According to Palicha, the Indian grocery market would be worth $850 billion by FY29, of which these top bracket households would account for $400 billion. by Deepsekhar Choudhury https://lnkd.in/guUa-pj7

Around 2 lakh kirana stores are now out of business, largely due to the rise of quick commerce platforms like Zepto, Swiggy, Zomato, and others. While the number of stores and gross order value in the online space continues to grow, many customers have stopped purchasing from traditional kiranas altogether. A survey by Datum reveals that 5% of respondents no longer buy from kiranas. Though the percentage impact seems small (1.54%) when compared to the 13 million kiranas in India, the situation is something we should all take seriously. Some believe this trend is limited to Tier-1 cities, but that is not entirely true. Blinkit, for example, has expanded to 44 cities, and companies like Flipkart, with broader access to pincode coverage, are also entering the quick commerce space with Minutes. Given this, is it time for the government to step in with more than just suggestions? Should they take stronger action to support kiranas and address the growing competition from quick commerce? *** Tomorrow, in a detailed blog featured on Finding Outperformers, we will explore how QCom players are positioning themselves as 'Enablers' rather than 'Disrupters' in the industry. (check comments for the link of the newsletter) Aditya Grover *** Disclaimer: The opinions expressed in this post are my own and do not necessarily reflect the views or positions of the organization I am employed with. 

"The Q-Commerce Boom: Dark Stores Revolutionizing Indian Real Estate" 🗣️ "Have you noticed how you can get essentials in minutes these days?" That’s the magic of Quick Commerce (Q-Commerce) reshaping our cities! 🚀 The demand for dark stores—small, strategically located warehouses—is projected to soar, with estimates hitting 37.6 million sq. ft. by 2027 at a whopping 12% CAGR. 🏙️ "So, what does this mean for Indian real estate?" Imagine urban spaces becoming the nerve centers of instant delivery. With Swiggy, Blinkit, and Delhivery aggressively scaling their networks, Tier-II and Tier-III cities are seeing a boom in real estate investment for these micro-fulfillment hubs. The ripple effect? Higher rental demands, property appreciation, and a reshaping of our urban landscape. 🔍 "But isn’t there a catch?" Absolutely. Compliance hurdles and zoning regulations remain a challenge. Navigating these issues is essential to sustaining the momentum and fully unlocking the potential of q-commerce. But for those willing to innovate, the payoff could be substantial. 🔑 "Are you ready to be part of the Q-commerce real estate evolution?" The future of Indian real estate and logistics is here. Embrace it, and let’s drive this transformation together. Hit #Connect #5StarRealEstate #QCommerce #DarkStores #RealEstateGrowth #IndianLogistics #UrbanRealEstate #InvestmentOpportunity #QuickDelivery Blinkit Zepto Swiggy Delhivery

CEO Aadit Palicha's assertion that Zepto will surpass DMart within 2 years sounds ambitious. While looking at 💼 DMart's model of essential goods and efficiency through 200 stores, #Zepto navigates urbanization and convenience, alongside strong competitors like #SwiggyInstamart and #Blinkit. Zepto's #FinancialPerformance FY23 revenue was ₹2,024 crore, showing rapid growth but much smaller than #DMart's ₹30,976 crore ($3.75 billion) in FY2022. DMart is reporting profits in tune of ₹1,499 crore in FY23 while Zepto grew on losses of ₹1,272 crore in FY23. It will be now worth watching how Zepto's #BusinessStrategy fulfils what it dares today. #Ecommerce #RetailIndustry #CompetitiveAnalysis #InvestmentInsights #StartupChallenges #RetailTrends #QuickCommerce #MarketAnalysis

With increasing consumption, rising disposable income and changing spending patterns, the race among quick commerce giants such as Zepto, Blinkit, and Swiggy Instamart has intensified. There is speculation that these quick commerce players could eventually pose a significant challenge to e-commerce giants like Amazon and Flipkart. Zepto's founder has claimed that Zepto will be valued at $80 billion in a few years, while Deepinder Goyal has stated that Blinkit could become even bigger than Zomato. In this intensifying competition , Everything sounds good for quick commerce giants But..... There is one group of people suffering: And those are Kirana Stores. With the growing quick commerce industry and changing consumer behavior, these small neighborhood shops are facing declining demand. Millions of households rely on Kirana stores for their livelihoods, and it seems unfair that they are being edged out in this race for dominance. But what can these Kirana store owners do to turn this competition into an opportunity? I personally believe that they should adopt an omnichannel model. While creating or acquiring the necessary software might involve a significant upfront cost, it could yield substantial long-term benefits. By outsourcing software development and increasing their online presence, Kirana stores could diversify their sales channels and attract a new customer base. These stores also have a potential advantage over quick commerce giants in terms of customer loyalty. Many people prefer to shop at Kirana stores they've frequented for years due to the emotional connection they've built. Kirana stores can capitalize on this opportunity, especially considering that only 5-7% of the revenue for quick commerce giants comes from non-fresh items and vegetables. The remaining 95% is primarily focused on fresh goods. Given this, Kirana stores could take the lead and drive their own growth story. Will they be able to do so? Or will these giants continue to grow, leaving no room for Kirana stores? Share your opinions for a healthy discussion. #Quickcommerceindustry #Blinkit #Zepto