Back

Jayant Mundhra

ย โ€ขย 

Dexter Capital Advisorsย โ€ขย 1y

#Deepdive: Zeptoโ€™s soaring valuation is driven by its meat biz ๐Ÿ’ฐ๐Ÿš€ Strange that hardly anyoneโ€™s talking about it. No doubt, most people donโ€™t get it. So, letโ€™s deep-dive and break down! .. Zepto was recently valued at $3.6bn (though the pre-money valuation was $3bn). But, this included its private-label meat brand called Relish! And whatโ€™s special about it? Four things! .. 1๏ธโƒฃ Relish has hit an annual revenue run rate of Rs 500cr. -> Thatโ€™s very close to Rs 850cr run rate of standalone meat delivery unicorn startup, Licious -> Licious was last valued at $1.5bn and is the de facto leader in this space on a pan-India basis -> But, Licious operates in 20+ cities! Zepto is present in just 10 and hasnโ€™t even launched Relish in all of them Thus, Zepto has definitely trumped Licious to become the market leader in many of the 10 cities, where Zepto operates ๐Ÿ™Œ๐Ÿ™Œ .. 2๏ธโƒฃ When Zepto raised money before this, there was no Relish! Zepto last raised a round in August 2023 at $1.4bn valuation (post-money). And Relish was launched months later, around December ๐Ÿ˜…๐Ÿ˜… Thus, Relish has added a massive chunk of the valuation here! .. 3๏ธโƒฃ What helps? Relish is a very high-margin business. Plus, it amps up the average order values significantly. Hence, it not only brings in money on its own but also makes the whole of the unit economics per order better! .. 4๏ธโƒฃ Just 7 months! -> If Zepto could launch and scale a new business to such a massive scale in just 7 months, what happens when it launches more of such niche brands? -> The sales, margins and overall unit economics could improve dramatically! Thus, the founders (Aadit, Kaivalya) have displayed solid execution here ๐Ÿ™Œ๐Ÿ™Œ And thatโ€™s what led to the big valuation jump. .. Mind it, the impact of Relishโ€™s sky-rocketing pace is already visible. Licious, as per various media reports has not grown in the last 12 months and has been stagnant. And that is largely about the entry of Zepto, which ate away all the growth. Speaks volumes. What do you think?

6 Replies
3
14
Replies (6)

More like this

Recommendations from Medial

Image Description
Image Description

Havish Gupta

Figuring Outย โ€ขย 1y

Well this is why QCom Startups can be the next Amazon! So in terms of revenue, Licious is the biggest meat company in india with over 750cr sales. It was founded in 2015 by Vivek Gupta and Abhay Hanjura. It currently operates in 20 cities and sells

See More
42 Replies
7
25
Image Description
Image Description

sia shetty

Unlocking Business I...ย โ€ขย 7m

How Licious Built a โ‚น12,500Cr Meat Empire & Disrupted Indiaโ€™s Meat Market! ๐Ÿ–๐Ÿš€ ๐Ÿ›‘ The Problem: Before Licious, 90% of Indiaโ€™s โ‚น2.6L Cr meat market was unorganized โ€“ poor hygiene, no cold chains, and unreliable quality. Butchers sold stale meat at i

See More
7 Replies
5
10
Image Description
Image Description

Aarihant Aaryan

Prev- Founder & CEO ...ย โ€ขย 10m

It's super fascinating that zepto has built so many businesses internally at scale 1. Relish by zepto 2. Zepto Cafe 3. Zepto vegetables and fruits vertical 4. Zepto Ad tech business This is the pure outcome of getting great people to work toge

See More
3 Replies
2
16
Image Description
Image Description

Shubham Kumar

Hey I am on Medialย โ€ขย 1y

Magic Meat : A Culinary revolution in Hazaribagh, Jharkhand Bringing Freshness and Convenience to Your Doorstep In the bustling city of Hazaribagh, Jharkhand, a gastronomic transformation is underway. Magic Meat, a trailblazing online meat delivery

See More
8 Replies
2
12
Image Description
Image Description

Nandishwar

Founder @StudyFlames...ย โ€ขย 8m

Meet Indiaโ€™s Youngest Self-Made Entrepreneurs โ€“ Breaking Barriers & Building Empires! ๐Ÿš€ ๐Ÿ”ฅ These young visionaries are redefining success and proving age is just a number! Here's the lineup from the Hurun India list: 1๏ธโƒฃ Kaivalya Vohra (21) โ€“ Ze

See More
7 Replies
5
13
Image Description

Rishi Chavan

Inquisitiveย โ€ขย 2m

Milkbasket, Licious, FreshToHomeโ€”these next-day delivery apps honestly feel super inconvenient to me. Like... who really plans groceries a day in advance? ๐Ÿ˜ตโ€๐Ÿ’ซ Most of us realize weโ€™re out of something in the momentโ€”you open the fridge, thereโ€™s no m

See More
1 Reply
4
Image Description

Rishi Chavan

Inquisitiveย โ€ขย 5m

Movie Promotions have gone wild! Just received this from Zepto! Also a question popped in my mind- The attack on Saif Ali Khan which happened at his house a couple of months ago, was it also a part of Promotion of this Movie?๐Ÿ’€

1 Reply
5
Image Description
Image Description

Account Deleted

Hey I am on Medialย โ€ขย 1y

โ€ข Flipkart wants to acquire majority stakes of Zepto at the valuation of $ 2Billion but Zepto rejected the deal because of Zepto founders don't want to lose control over the company in future. โ€ข But why Flipkart wants to acquire majority stakes of Z

See More
6 Replies
11
Image Description
Image Description

Samanth Shetty

Building Nestsureย โ€ขย 2m

Itโ€™s been over 12 months and Zepto is nowhere near DMart. ๐Ÿ˜‚ DMart: โ‚น2.5โ€“3 lakh crore valuation Zepto: ~โ‚น51,000 crore (despite massive VC backing) And DMart built that without VC cash โ€” pure execution and profit. Ambition alone doesnโ€™t scale like t

See More
4 Replies
9

Download the medial app to read full posts, comements and news.