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We are aiming for an IPO in the next 2-3 years: Zepto CEO Aadit Palicha

We are aiming for an IPO in the next 2-3 years: Zepto CEO Aadit Palicha

According to Palicha, the CEO and co-founder of Zepto, who spoke to Business Today exclusively, the company can easily turn profitable in the next few quarters.

10 minute grocery delivery startup, Zepto is aiming to go public in next 2-3 years , CEO and co-founder, Aadit Palicha told Business Today 10 minute grocery delivery startup, Zepto is aiming to go public in next 2-3 years , CEO and co-founder, Aadit Palicha told Business Today

The 10-minute-delivery start-up Zepto, which is co-founded by two 19 year olds -- Aadit Palicha and Kaivalya Vohra -- is eyeing an initial public offer in the next 2-3 years.

According to Palicha, the CEO and co-founder of Zepto, who spoke to Business Today exclusively, the company can easily turn profitable in the next few quarters, however, that is not a major concern now, since this is the first year of the start-up’s inception. Palicha said that keeping in mind the unit economics the company has in place currently, a public listing could also be on the cards in next 2-3 years.

Zepto, in December last year, had raised $100 million in a Series C round, which was led by Y Combinator's Continuity Fund, at a valuation of $570 million, a 2X jump from its earlier valuation. There are indications that the quick commerce company could soon hit the coveted $1 billion valuation mark, thereby becoming one of the youngest Indian start-ups to enter unicorn club.

After a record fund-raise that the Indian start-ups witnessed last year, there is a general overview in the industry that the VCs have held back funding for late-stage companies. Palicha, echoing the same concerns, however, pointed out that there may be a pullback from the investors for large companies this year, but in general, company metrics are pertinent to attract the traction from investors.

“In general, why Zepto has been able to drive investors interest within a short span of time is because of our core business model, unit economics which do not make profitability seem like a distant dream. Although we believe that the funds for a young company will be further utilised in scaling operations, building better products, hiring more people, but the focus should also be on making profits and getting back the value,” Palicha said.

While Zepto recently announced Zepto Café, which is a 10-minute snacks and tea delivery service for several pincodes across Mumbai, Palicha said that the quick deliveries in healthcare/ pharma is also something the leadership is contemplating, without giving out the timeline of their foray into this or another vertical.

“We are really cementing our place in quick grocery delivery and snacks verticals. Foraying into pharma delivery would of course require strategic partnerships with key players and other dynamics. So, although we are planning something on this and you may soon hear from us on this,” the 19-year-old CEO said.