The Bengaluru-based quick-commerce application (app) Zepto is making big strides.
According to Sensor Tower data, it surpassed JioMart in November, securing the second position among grocery apps in terms of monthly usage.
IMAGE: Kaivalya Vohra, co-founder and Aadit Palicha, CEO, Zepto. Photograph: Kind courtesy Zepto/Linkedin
This shift, identified by BofA Global Research, closely monitoring key segments of the app business, has pushed JioMart to third place in the grocery space.
In the grocery segment, Zepto has demonstrated growth in both daily average users (DAU), which increased by 8 per cent in November compared to the previous month, and monthly average users (MAU), which rose by 10 per cent over October.
Conversely, during the same period, JioMart saw a sharp decline of 21 per cent and 17 per cent in DAU and MAU, respectively, from their record-high base on October 23.
Zepto has consistently held the no. 1 position in terms of DAU since June 2023, showcasing month-on-month (M-o-M) growth and widening the gap with Blinkit, another player in the quick-service e-commerce space.
This success may be ascribed to increased marketing efforts, backed by a recent fundraise of $200 million, propelling Zepto to the status of the first unicorn in 2023 with a valuation of $1.4 billion.
The company is on track to achieve annualised sales of $1 billion in the quarters ahead, currently processing between 300,000 and 400,000 orders daily, with an average order size ranging from Rs 400 to Rs 500.
With 200 dark stores across seven cities, Zepto plans to expand its Zepto Caf service, offering groceries and fast delivery of items such as tea, coffee, and croissants, to Delhi-National Capital Region, Bengaluru, and Hyderabad by June 2024.
However, Blinkit maintains its lead in MAU, reaching 20 million in November compared to Zepto’s 13 million.
Other competitors, such as BigBasket, achieved over 6 million MAU in November, while DMart Ready s MAU is estimated at sub-5 million.
JioMart recorded over 11 million MAU.
An indicator of Zepto’s marketing aggression is the substantial increase in app downloads, rising by 12 per cent M-o-M in November, accumulating around 1.3 million downloads.
In contrast, Tata-owned BigBasket lost ground, seeing a 3 per cent decline in M-o-M MAU in November, and DMart Ready decreased by 2 per cent.
In the over-the-top space, Disney+ Hotstar set new records in usage, driven by the World Cup, according to BofA Research, even though India did not win the finals.
Consequently, Disney+ Hotstar’s DAU in November reached over 93 million, with MAU soaring to 474 million (in contrast to Jio Cinema’s less than 100 million).
Other platforms, including Amazon Prime, Netflix, and Zee5, remained below 35 million in MAU.
