Zepto, the instant groceries startup, is considering expanding into the online pharmacy space, where it would compete with Tata’s 1mg, Reliance’s Netmeds, and Pharmeasy.
The news comes as Zepto, a Mumbai-based 10-minute delivery service, prepares to expand the pilot of its “café” business, allowing Zepto customers to buy hot tea and coffee and snacks.
“It’s probably a category we will be excited about in the future,” Aadit Palicha, founder at Zepto, said. “There will be a lot of innovation that will need to be done in the space. This is something we will focus on in the medium to long term and probably not in the short term.”
Zepto, founded by two Stanford dropouts, Palicha and Kaivalya Vohra, competes in India’s expanding rapid commerce industry with well-established competitors such as Swiggy’s Instamart, Reliance-backed Dunzo, Tata’s Big Bazaar, and Zomato’s Blinkit.
“In Mumbai, we piloted the ‘cafe’ business with exciting levels of success. New categories such as these are margin drivers for the business. The margin structures we are seeing in those categories are phenomenal,” said Palicha.
