Zepto and its rivals — Zomato-owned Blinkit, Swiggy-owned Instamart, and Tata-owned BigBasket — currently operate at lower margins than traditional retail, and Morgan Stanley expects market leaders to reach contribution margins of 7% to 8% and adjusted EBITDA margins of more than 5% by 2030. (Zepto is currently spending about $35 million a month, according to many people familiar with the figure.)
Zepto, which serves a total of more than 7 million orders in over 17 cities daily, is on track to record annualized sales of $2 billion, according to an investor presentation reviewed by TechCrunch. It projects 150% growth over the next 12 months, CEO Aadit Palicha told investors in August. The startup plans to go public in India next year.