A layman can understand business of any world if they go through your all videos & hats off to YOU for makeing us more knowledgeable 🙏! Please keep up the good work & we are truly blessed 😊!
In groceries it is impossible to operate in this model since the margins are very low and stringent, zepto or any other online groceries thinks they will make our profits, beside profits there will be losses and advertising is simply an add on also there will overheads cost like petrol,vehicle etc. it is also difficult to understand their funding roadmaps as well which is very strange, at what ROI or valuations and most importantly their net profits they are forecasting
I understand that for a new company like Zepto, spending on advertising is necessary in the initial years to create the buzz. But selling something below the purchase price is beyond any business logic, and Zepto will have a hard time reversing it even if they onboard a huge army of users.
I agree with most of the points shared but just thinking out loud a contradictory view point with one thing, isn't spending on ads would be considered as assets, meaning that would eventually help Zepto in the long run... thoughts?
Profits is key thing when the margins are very low and stringent, groceries are different from other businesses like clothes, apparels or electronics where there's is room for discounts and other facilities there businesses have luxuries to proportion funds in advertising as well
Hi Pavan, Great Explanation! But don't you think this is happening across the startup ecosystem, especially the ones that directly deal in retail? For Example, let's say X e-commerce site gave a projection that they will be profitable by next 10 years, and they go on a marketing spree in these years selling products at 20-30% discount, now do you think the local retail will be able to sustain such thing? He might survive for some time, but end of the day he will die out. I have seen it happening in my district for electronics, fashion. What do you think are the long term implications of these? Is it really creating jobs or just killing the local retailers?
Hai sir Would like to ask your opinion on a similar online quick start bussiness What do you suggest or think about online 10mins delivery pharmacy bussiness ?
My only thinking was how the hell those smart af vc's would put that much money on to a startup which barely generate revenue in comparison to the funding, and I'm not even talking about profitability
Zepto is the one who got quick commerce in india , now such people like you do make videos who don't have any business sense. If some one is getting ideas on the plate appreciate them. And wait for sometime before commenting on anything. Bcos it's very easy to comment. Current Zepto valuation is a 5 billion dollar, investor are not fools.
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A layman can understand business of any world if they go through your all videos & hats off to YOU for makeing us more knowledgeable 🙏!
Please keep up the good work & we are truly blessed 😊!
Thanks for the kind words :)
In groceries it is impossible to operate in this model since the margins are very low and stringent, zepto or any other online groceries thinks they will make our profits, beside profits there will be losses and advertising is simply an add on also there will overheads cost like petrol,vehicle etc. it is also difficult to understand their funding roadmaps as well which is very strange, at what ROI or valuations and most importantly their net profits they are forecasting
I understand that for a new company like Zepto, spending on advertising is necessary in the initial years to create the buzz. But selling something below the purchase price is beyond any business logic, and Zepto will have a hard time reversing it even if they onboard a huge army of users.
I agree! And that is where is the biggest problem!!
Please do a case study on blinkit as well because blinkit has turned profitable
Unfortunately, all new start-ups are ignoring the unit economics. Burning VC funding to create hype and exit at inflated valuations.
What about dumping on retail investors through an IPO
Very informative and knowledgeable video... Thank you Pavan
We will be sad and looted if it launches its IPO
Watched video and learned also many . Just asking what is the future quick commerce future in India market?
Iz Zepto will be grow up?
The business model is very shaky. And as long as unit economics don't work - it's a shop waiting to sink
Pavan very insightful videos you make.
But how would you monetize it when you have disabled ad sense on it :)
Gr8 explanation in simple terms
Kudos to Pavan sir🎉
Thank you for the kind words Naman:)
Can we say all the startups are in losses but the founders are now billionaires
How minting profit for zepto will help the local kirana store’s cause?
This video is gonna age like a stale wine 😂😂😂😂.
Hi Pavan,
We are planning to setup a zepto franchise, please suggest us it is a right choice or not ?
Brilliant analysis. Subscribed.
I agree with most of the points shared but just thinking out loud a contradictory view point with one thing, isn't spending on ads would be considered as assets, meaning that would eventually help Zepto in the long run... thoughts?
I agree! That will help in the long run. But, combining that with selling at a lower price is the underlying problem
Profits is key thing when the margins are very low and stringent, groceries are different from other businesses like clothes, apparels or electronics where there's is room for discounts and other facilities there businesses have luxuries to proportion funds in advertising as well
Hi Pavan,
Great Explanation!
But don't you think this is happening across the startup ecosystem, especially the ones that directly deal in retail?
For Example, let's say X e-commerce site gave a projection that they will be profitable by next 10 years, and they go on a marketing spree in these years selling products at 20-30% discount, now do you think the local retail will be able to sustain such thing? He might survive for some time, but end of the day he will die out. I have seen it happening in my district for electronics, fashion.
What do you think are the long term implications of these? Is it really creating jobs or just killing the local retailers?
Hai sir
Would like to ask your opinion on a similar online quick start bussiness
What do you suggest or think about online 10mins delivery pharmacy bussiness ?
My only thinking was how the hell those smart af vc's would put that much money on to a startup which barely generate revenue in comparison to the funding, and I'm not even talking about profitability
Maybe the factors such as the scope of growth and the growing size of the total addressable market are also considered.
Zepto was always a bad start up, don't know why people went crazy, may be due to its promotional offers
Zepto is the one who got quick commerce in india , now such people like you do make videos who don't have any business sense. If some one is getting ideas on the plate appreciate them. And wait for sometime before commenting on anything. Bcos it's very easy to comment.
Current Zepto valuation is a 5 billion dollar, investor are not fools.
lol dude!! Such a naive argument. I wish you made a better case. Anyways, take it easy
Ola cabs has become profitable
ola electric is also loss making ??
Yes
What is the source of the data
Zepto's FY2022 revenue & cost data.