How Zepto Plans to Challenge Instamart, Blinkit, and Others with a $665 Million Fundraise 

IPO Plans of ZeptoZepto aims to launch its IPO next year. Speaking to the Economic Times, Palicha said that they are looking at this fundraise as a means of strengthening the balance sheet in preparation for the IPO. Meanwhile, the Quick Commerce platform is also in the process of shifting its domicile back to India. Currently domiciled in Singapore, Zepto will complete the process of shifting its domicile to India in the next couple of months, as per Moneycontrol. Start-ups such as Groww, PineLabs, and PhonePe have already shifted their domicile back to India. Other start-ups, such as Meesho, Udaan, and RazorPay, are in the process of doing the same. The intensifying race of quick commerceWith a $2.8 billion market currently, quick-commerce is positioned to become a disruptive force and change the retail landscape, as per Redseer Strategy Consultants. Many industry professionals are shocked by Q-commerce’s success in India, mainly due to the numerous failure tales of comparable businesses around the world, adds Redseer Strategy Consultants. “Q-commerce platforms have mastered understanding their target customers’ purchase patterns and accordingly customizing the selection and experience,” adds the research. Dabur India anticipates that 25% to 30% of its revenues will come via quick commerce, as per TechCrunch. Similarly, Nestle India feels that Blinkit has become as important as Amazon. Indian customers frequently buy small-ticket items multiple times a week within their local area, and quick commerce caters to this demand by offering hyper-local, high-proximity, and low-ticket solutions, said Palicha to TechCrunch. With the growth of quick commerce platforms, Goldman Sachs recently mentioned that Zomato’s Blinkit is more valuable than its core business. While the food delivery business of Zomato is valued at Rs 98 per share, Blinkit is valued at Rs 118 per share. Eyeing the quick commerce segment, several other players, such as Flipkart and Reliance’s JioMart, are planning to enter the space. Zepto had a long way to go from starting as a start-up in 2021 to becoming a unicorn last year. The company started during the second wave of the COVID-19 pandemic, at a time when everyone was confined at home and the demand for quick commerce increased. After raising $200 million at a valuation of $1.4 billion, Zepto became the first unicorn in 2023. Amid the intensifying race in the quick commerce segment, it will be interesting to observe how Zepto fares in the long run.

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