Insight certainty 3/5 debate potential 3/5

Palicha: Quick commerce can reach double-digit EBITDA with 7-8% ad revenue

Aadit Palicha · Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings · Jun 4, 2022 · at 57:23

Aadit Palicha, CEO of Indian quick-commerce platform Zepto, explains how advertising and brand monetization drive long-term business model profitability.

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“If we can get that to seven, eight percent, there's no reason why, you know you know, this business can't be close to a double digit EBITDA business, right? I think it's very possible in the long term.”

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More from Aadit Palicha

Assertion Not publicly verifiable
Palicha: Cutting Zepto delivery under 15 minutes tripled retention and stabilized NPS
“When we take our delivery times from 45 minutes to under 15 minutes, what we see with retention is two to three x goodness. NPS starts stabilizing at north of 85 points”
Aadit Palicha Jun 4, 2022 ▶ 2:41 Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings
Assertion Not checkable as stated
Palicha: Zepto's rent costs for mature dark stores are 0.7% of revenue
“Our cost of rent as a percentage of revenue for mature dark stores is about .7%, right?”
Aadit Palicha Jun 4, 2022 ▶ 5:54 Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings
Insight
Palicha: Fresh produce drives quick-commerce adoption in emerging markets
“Customers really use your platform if and only if you can give them something that's just like viscerally and, you know, viscerally adds value immediately. And that key, what we've seen at least in India, that key category is fresh and fruits and vegetables, f…”
Aadit Palicha Jun 4, 2022 ▶ 11:17 Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings
Disclosure
Palicha: Zepto fresh produce wastage is 350 bps below retail benchmarks
“We're in a position where our wastage numbers are 350 basis points lower than retail benchmarks.”
Aadit Palicha Jun 4, 2022 ▶ 20:40 Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings
Assertion Not checkable as stated
Palicha: Zepto picking costs are 3-3.5% and 10-11% blended with last mile
“Yeah, I think for us right now, it's roughly about three, 3.5% on picking and then blended with last mile goes to about 10, 11%.”
Aadit Palicha Jun 4, 2022 ▶ 27:37 Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings
Assertion Not checkable as stated
Palicha: Zepto customer average order value grows 40-45% by month six to eight
“We're seeing that as customers get more and more mature to on the platform, our end-state AUV AUB ends up being, you know, 40 to 45% higher by month six to month eight in the customer's journey with us, right?”
Aadit Palicha Jun 4, 2022 ▶ 29:03 Q-Commerce in Emerging Markets with the CEOs of Airlift, JOKR, & Zepto | 20VC #892 · 20VC with Harry Stebbings
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