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Read MoreRaj was looking at the growth of Zepto, an Indian Quick-Commerce (Q-Commerce) firm which promises “10-minutes delivery”. Working in one of the world’s largest venture capital firm Nequoia , he has to understand this sector fully and decide whether to invest in Q-Commerce industry or not.
But the more he is researching the more he is getting intrigued by this sector!
To his astonishment Zepto had grown phenomenally. Zepto, started by two 19-year Stanford dropouts has raised USD 100 mn led by Y Combinator’s Continuity Fund at a valuation of $570 million within 5 months of its inception!!!
Zepto delivers over 2,500+ items including fresh produce, cooking essentials, snacks and beverages, personal care items and home cleaning products . According to CBINSIGHTS , as of Nov-2021, it had 40 dark stores across Mumbai, Bangalore & Delhi and it was planning to have more than 100 dark stores across Kolkata, Pune, Hyderabad & Chennai.
The growth of Zepto also comes in the global background of Q-Commerce companies gaining phenomenal growth. Globally, Q-Commerce as a format has already picked up a lot of investments. For example, this format is there in China for last 5-7 years with the likes of companies such as Miss Fresh, Dingdong Maicai and Meituan Maicai . In last two years several companies have emerged and/or grown exponentially in Euorope/U.K. (like Getir, Gorillas, Flink, Zapp, Jiffy and Cajoo) and US (like GoPuff).
Gorillas, a Germany based Q-Commerce firm has become the fastest European startup to achieve the unicorn status in just 9 months from inception (which was May’2020). As per its website, it delivers 2000 items in more than 60 cities, including Amsterdam, London, Paris, Madrid, New York, Milan and Munich with a diverse team of more than 14,000 employees globally and built more than 200 warehouses across 9 countries.
In India also, BlinkIt (earlier Grofers), Swiggy’s Instamart, Zomato are gaining much popularity in this space. Even the more established firms such as the likes of Amazon and Walmart Inc-backed Flipkart & Tata owned Bigbasket (through BBNow) are also venturing into Q-Commerce segment.
With so much competition and companies rushing to the Q-Commerce bandwagon with a fear a FOMO, it is very difficult to evaluate the fate of the companies of this segment.
Raj was worried as he does not want to miss the opportunity created by Q-Commerce companies but at the same time two un-solved issues are really making him think twice before recommending investment in this segment. These two issues are:
He was looking at his Apple MacBook screen while playing with a pen. He has to not only convince his Partner but also convince himself before jumping to Q-Commerce bandwagon with a multi million dollar investment proposal.
So what did Raj finally decide? How did he decide. Please read on our detailed case study with following points covered in the case:
+91-81485-89887 support@gocrackit.com About Services Career Conversations Mock Interviews Resume Reviews Job Preparation Kit Mentor Resources Online Courses & Certificates AI...
Read More+91-81485-89887 support@gocrackit.com About Services Career Conversations Mock Interviews Resume Reviews Job Preparation Kit Mentor Resources Online Courses & Certificates Career...
Read More+91-81485-89887 support@gocrackit.com About Services Career Conversations Mock Interviews Resume Reviews Job Preparation Kit Mentor Resources Online Courses & Certificates Career...
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