Zepto, securing $1 billion within 90 days, anticipates a 150% growth rate annually.

Aadit Palicha, co-founder of the Indian delivery startup Zepto, shared with a group of analysts and investors on Tuesday that the company expects a 150% growth in the next 12 months. This projection highlights the rapid expansion of the quick commerce market in India. The call, which was organized by an investment bank, included representatives from major investment firms like Abu Dhabi Investment Authority, Temasek, GIC, and Invesco, according to materials reviewed by TechCrunch. Zepto's spokesperson declined to comment when contacted on Tuesday.

Palicha revealed that Zepto's annualized sales run rate recently surpassed $1.5 billion, and with a growth rate of around 150%, the company could see sales exceed $3.5 billion. Zepto is competing with Zomato’s Blinkit, Swiggy Instamart backed by SoftBank, and BigBasket, all offering 10- to 15-minute delivery services. Currently, BlinkIt’s run rate is approximately $2 billion.

Quick commerce is gaining significant momentum in India's $1.1 trillion unorganized retail market. Together, Zepto, BlinkIt, Swiggy, and Tata-owned BigBasket’s BB Now are projected to achieve annual sales exceeding $6 billion, compared to the overall e-commerce sales of around $50 billion. BigBasket, which traditionally delivered groceries within a few hours, announced on Tuesday that it is fully transitioning to quick commerce.While the Indian e-commerce market is growing at an annual rate of about 11% to 12%, quick commerce has seen over 100% growth each year for the past three years. According to Rahul Malhotra, an e-commerce analyst at Bernstein, quick commerce firms are "clearly gaining market share" from larger e-commerce companies.

During the call, investors questioned Palicha about the potential for quick commerce to expand beyond India’s top cities, where these services are currently concentrated. Palicha responded by stating that quick commerce is not limited to Tier 1 cities, and their data shows a significant opportunity in tier 2 and 3 cities, regardless of market conditions.