Flush with funds, fast-commerce major Zepto is gearing up to launch its own buy now, pay later (BNPL) offering, Zepto Postpaid.
The program, which is being promoted on the Zepto app, is currently in its early stages. The company is encouraging users to join a waitlist to get early and exclusive access to the service. Through Zepto Postpaid, the company promises users “up to Rs 5,000 in interest-free cashback.”
Rival companies such as Zomato-owned Blinkit are already offering BNPL services to their customers through partnerships with players such as LazyPay and Simpl.
Zepto has also partnered with BNPL firm Simpl since January 2022. In April, Simpl recorded over 13 million payments through the leading fast-trading platform and is looking to increase this figure to 100 million by 2026.
In partnership with Simpl, Zepto was able to access Simpl’s one-tap payment option, available to consumers using Zepto’s Pass membership program.
The company recently raised $340 million in a follow-on funding round at a $5 billion valuation to shore up its balance sheet as it prepares for an initial public offering (IPO). This came two months after the company raised a whopping $665 million in a Series F round, which valued it at $3.6 billion.
Zepto, which is the only company that focuses exclusively on fast commerce, competes with the likes of Blinkit (owned by Zomato), Swiggy Instamart and BigBasket (owned by Tata).
The Mumbai-based company has been steadily increasing its market share in the fast-trading space. While Blinkit remains the market leader with a 40% share, Zepto’s market share has increased from 15% in March 2022 to 22% in January 2024, according to a recent report by HSBC Global.
Meanwhile, Instamart’s share fell from 52 percent in March 2022 to 32 percent in January 2024, according to the report.
According to its latest financial statements, Zepto’s operating revenue rose 14-fold to Rs 2,024 crore in the financial year 2022-23 (FY23), compared to Rs 140.7 crore in the previous year. Meanwhile, the Mumbai-based startup’s losses tripled to Rs 1,272 crore during the period, compared to Rs 390.3 crore in the previous year, according to documents filed with the Ministry of Corporate Affairs.
First published: September 6, 2024 | 16:40 IS
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