Indian quick-commerce startup Zepto has surpassed the annualised sales milestone of $1 billion within just 29 months of its inception, Goldman Sachs wrote in a note Thursday, citing the Zepto management.
Zepto, which became a unicorn last year, counts YC Continuity, StepStone Group, Glade Brook Capital and Lachy Groom among its backers.
“Overall EBITDA margin for Zepto is at negative single-digit percentage and the company is on track to break even at the EBITDA level within the next quarter.
The company expects steady state contribution margin of 12%, with steady state EBITDA margin of 7%,” the report added.
Zepto believes it can expand into 40-50 cities over time,” the report added.
It has heavily invested in its supply chain infrastructure over the years, with a particular focus on reducing delivery times for grocery items.
Quick-commerce accounts for about 40% of the online grocery delivery category, the analysts said.
“Quick commerce with a potential TAM of ~$45 billion (~7% of the grocery market of $620 billion),” they wrote.
We estimate quick-commerce GMV to grow to $6.2 billion by 2025.”Indian news outlet Entrackr first reported some of the details of Flipkart’s instant commerce play Thursday.
We constantly work towards delivering a wide range of products to customers with speed,” a Flipkart spokesperson said.
Shadowfax, one of the largest logistics service providers to hyper-local and on-demand delivery businesses in India, has raised $100 million in a new funding round as it clocks an yearly growth of 35%.
Shadowfax says it makes over 2 million packages delivery each day and has amassed over 3.5 million registered users.
Shadowfax operates a logistics and delivery network of over 125,000 monthly active delivery personnels, and works with numerous firms including Flipkart, Meesho and many direct-to-consumer brands.
Shadowfax is Mirae Asset’s first investment in India and the venture firm has participated in each subsequent round.
“We believe that logistics is fundamental to ecommerce and hyperlocal commerce and that it enables the growth of these markets.
