Is Zepto IPO coming soon? 6 ways online grocery delivery startup earns money; not many people know about them
Zepto's business model is built on six revenue streams: direct sales, delivery and handling fees, subscription charges, small cart fees, and advertising partnerships, driving its growth towards a highly anticipated IPO.
Zepto, a rapidly growing quick commerce startup, is gearing up for an IPO slated for next August. With over $1 billion in recent funding and a current valuation of $5 billion, Zepto is making waves in the industry. As it prepares to relocate its base from Singapore to India, many are curious about how the company generates revenue. Zepto’s business model includes six key revenue streams: direct sales, delivery fees, handling charges, subscription services, small cart fees, and advertising partnerships.
Zepto Business Model Overview
IPO Announcement: Zepto, a fast-growing startup, is preparing to launch its IPO, expected in August next year.
Recent Funding
In the last two months, Zepto raised over $1 billion, including $340 million at a $5 billion valuation.
Relocation Plans
Zepto is relocating its base from Singapore to India, strengthening IPO speculations.
Revenue Sources
- Direct Sales Description: Zepto's primary revenue stream is through direct sales.
- How it Works: The company buys products in bulk or at a lower cost and sells them at a margin, contributing significantly to its income.
Delivery Fee
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Description: A delivery fee is charged for each order.
- Fee Structure: Typically around Rs 25-30, the fee varies by distance. Orders exceeding a certain value get free delivery.
Description: A delivery fee is charged for each order.
Handling Charge
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Description: A small charge applied to each order.
- Amount: Generally around Rs 10, this charge is for handling and processing the products.
Description: A small charge applied to each order.
Subscription Charges (Zepto Pass)
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Description: Subscription service aimed at customer retention.
- Benefits: No delivery fee for orders above Rs 99, and up to 20% discount for orders exceeding Rs 299.
- Variable Pricing: The pass prices may differ based on customer targeting strategies.
Description: Subscription service aimed at customer retention.
Small Cart Fee
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Description: Fee applied to small orders.
- Purpose: While it generates revenue, the primary goal is to encourage larger orders.
Description: Fee applied to small orders.
Advertising and Partnerships
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Description: Zepto partners with various brands to display advertisements on its platform.
- Additional Income: These partnerships contribute to Zepto's revenue through advertising fees.
Description: Zepto partners with various brands to display advertisements on its platform.