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Scaling India’s quick commerce flywheel

We hosted Mr. Aadit Palicha, Co-Founder and CEO of Zepto, as a part of the CEO Track at AGIC CY25. Here are our key insights from the session:

Cost discipline key to scaling from here

Zepto believes cost efficiency will be key to scaling the company over the next few years. Management expects profitability to expand notably despite fast growth. On penetration, the company mentioned that majority of the GMV still comes from metro cities, which themselves remain significantly underpenetrated. While AOV remains stable, the company’s focus is on maximizing order volumes and take rates while reducing cost per order through density. Shorter delivery distances and highrise concentration are proving critical in lowering unit costs, setting the foundation for long-term profitability.

Unit economics on an improving trajectory

Mature stores are already profitable and growing well above average, while newer cities are achieving profitability faster than before. Further, delivery costs in highdensity clusters are below industry benchmarks, highlighting the structural cost advantage from scale.

Execution advantage in quick commerce

The business continues to demonstrate an execution edge over smaller peers. While new entrants have struggled to scale meaningfully, Zepto has consolidated its position as one of the largest players in this space. Management believes that longterm economics will be dictated by density, efficiency, and capital discipline.

Roadmap: Volume leadership through density

Zepto’s model is designed around volume, take rate, and cost per order rather than pushing AOV. Its strategic roadmap focuses on doubling down on density-led economics, extending selectively into adjacent categories like electronics and apparel, and avoiding high-burn verticals such as fashion. While competitive dynamics remain fluid, Zepto views scale efficiency (not just expansion) as the winning formula in India’s quick commerce industry.

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