In a landscape buzzing with rapid changes, Zepto, the quick commerce startup, has emerged as a key player, having recently secured a significant $350 million in funding. Co-founder and CEO Aadit Palicha is optimistic about the company’s trajectory towards an expected IPO in 2025, while also dismissing allegations that quick commerce models like Zepto’s are harming traditional kirana (local grocery) stores.

Palicha’s remarks highlight a strategic focus on growth and positive narratives surrounding the quick commerce sector. He asserts that ongoing discussions surrounding the model stunting kirana growth are not anchored in factual data. “These narratives underrate the net positives our industry brings, including significant job creation,” he remarks.

The quick commerce sector has generated numerous employment opportunities, with Palicha citing that Zepto’s instant delivery service has created lakhs of jobs and contributed positively to the economy. The scale at which Zepto operates in delivering daily essentials within 10 minutes remains unmatched globally, signifying the strengths embedded within Indian technological advancements.

One of the points of contention in the debate has been the claim of predatory pricing—allegations that Palicha robustly counters. He states that 99.8% of products sold on the platform are priced above cost, challenging the assertions made by competitors and concerned stakeholders. With a clear willingness to be scrutinized, he invites skeptics to review the company’s financials to substantiate his claims.

Palicha is also upfront about the sector’s navigational challenges, such as food safety and quality. He believes in promoting transparency and cooperation with regulatory bodies like the Food Safety and Standards Authority of India (FSSAI). Rather than clashing with these institutions, he suggests that they could be partners in enhancing service delivery to customers.

Furthermore, the economy is set for a significant upswing, with Palicha projecting over $200 billion in new consumption opportunities in India. “It is economically impossible that kirana stores are shrinking. They are growing, as are we,” he insists. His comments aim to dispel the myth that new commerce models are sidelining traditional grocery outlets.

The impact of quick commerce is particularly noteworthy, given the rapid creation of new job roles. In less than three years, the sector has produced about 450,000 jobs, with average monthly wages reaching over ₹20,000—substantially more than what is typically seen in the informal job market. “We are commemorating our indigenous technology that is creating real infrastructure and employment at scale,” says Palicha.

In terms of future strategy, Zepto’s plans to transition into a fully Indian-owned company are well underway, particularly as it shifts its base from Singapore to India. As Palicha articulates, “We aim to be a fully domestic company within the next financial year.”

With ambitions to expand further, Zepto is set to increase its presence to over 50 cities by the next quarter, a jump from around two dozen at present. Such rapid growth not only showcases the viability of quick commerce in the Indian market but also demonstrates Zepto’s commitment to considerable revenue generation, having already crossed the billion-dollar mark in revenue.

Looking ahead, Palicha is confident that more stores will achieve profitability, with timelines shrinking significantly—from 23 months to just eight months. His projections for the next financial year indicate that Zepto will reach a profit after tax (PAT) positive milestone, a signal he hopes will resonate favorably with potential investors.

In addition to its core services, Zepto is also seeing great success with its “Zepto Cafe” initiative. This concept not only boosts revenues but also enhances customer retention by encouraging repeated app usage among consumers. “We anticipate reaching ₹1,000 crore in business through Zepto Cafe alone,” he adds optimistically.

On competition, Palicha views it as a healthy aspect of the marketplace. “The market is genuinely large enough to accommodate multiple players,” he notes, allowing Zepto to concentrate on its unique business execution rather than fixating on rivals like Blinkit and Swiggy Instamart.

In conclusion, Zepto’s outlook for the near future is highly optimistic. From aiming for an IPO in 2025 to solidifying its market presence, the company is strategically navigating the complexities of the growing e-commerce domain while maintaining a firm stance against misconceptions about its impact on traditional retail.