Zepto is in a Difficult Situation

Zepto is in a Difficult Situation.

Their biggest investor YCombinator is pulling back, and it seems it needs to find new investors.

India’s quick commerce market is already insanely competitive, with the presence of players like Dunzo, which is backed by Reliance, Big Basket, which is backed by Tata Group, and then you have Blinkit and Instamart, which are backed by big players like Zomato and Swiggy.

In such a case, it seems the only way out for Zepto is going public, but for that, they have to become profitable first.

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[abhishekgururani]

Zepto was never meant to be sustained. It always was a ladder to bigger endeavours for both the founders.

[Pinto_Mouzer]

Prerequisites to start your startup these days
College tag (IIT, IIM or world renowned college)
Fluency in spoken english
A fascinating manipulative business idea(not necessary) with no core.

[yashthakar]

Someone will buy it out untill there are only 2 competitors left. My guess is Big basket and Swiggy will survive.

[kishorekanitkar]

And here it is...3 months on...and Zepto is now 2023's first Unicorn ...what a comeback 💥

[AnujMaurya.]

Yes it will make profit but only for their founder.

[jumper]

Instant Delivery services are essentially a formalization of the kirana stores who used to deliver groceries. The business model isn't new and does create any substantial utility. The profit margins are razor thin combined with the payment to delivery partner. Unless customers order grocery products in Bulk or the company captures a very large market share. It's not a viable business model in the long run.

[Raja-ctxq]

It's hurting to see the ambitious startups go down.

[silvery]

'Zepto will gp bankrupt or someone will buy them.' - My prediction couplw of years ago.

[tamanna]

Noooo zepto is my favorite, instamart takes too much time to deliver and blinkit catalogue is not good I hope they don't shut down. But i remember seeing an interview of the founder guy and he said they have years of runway, but idk he might be lying, if they close operations then dunzo is a reliable option

[MaJa]

As expected! The basic question is why to succeed? What is the product?

[VipulDhanedhar]

With players like reliance and Tata, it's difficult to compete

[infocorrect]

Fast forward to now.. They raise $600m+ in one month.

[ShaikhSalha]

Just like vast majority of the startups in india

[ms.]

Their business won't work in Indian budget centric market, with cut throat competition. They need to come up with something out of the box.

[Mystr.B]

Zomato & Swiggy are Fraud ! Hope Zepto doesn't mess up

[harshpathak]

We're one year ahead as per the timeline of the comments and Zepto has already raised cumulatively $1bn at a valuation of $5bn

[Warhead-rlgi]

Innovator can only play around until bigger players effectively immitate.

[jayeshratangairi]

Here is a good idea . SEBI should only allow IPO for companies which are making profit. Or have 2-3 quarters of profit

[ashainnovation]

It is funny how anyone is a analyst and news reader now zepto should hire this guy to make motivational tea

[armanchoudhary]

Their target population is like 1% of whole india. Other than these 1% people no one in their right mind will order something from these overpriced apps. We have grocery shops and convenience stores within 100m of reach in all of Delhi which are much cheaper and convenient than these startups.
They need to focus only on these 1% people and stop spending unnecessary money on people whose work can be done in 1/3 of cost.