Distributors Urge PM Modi to Halt Zepto IPO Amid Kirana Store Crisis
Distributors write to PM Modi on Zepto IPO, flag impact on kirana trade
Business Standard
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The All India Consumer Products Distributors’ Federation (AICPDF) has appealed to Prime Minister Narendra Modi regarding Zepto's upcoming initial public offering (IPO), citing its detrimental effects on traditional kirana stores. With an estimated 1 million kirana stores expected to close due to competition from quick-commerce platforms, the AICPDF seeks regulatory intervention to protect the FMCG distribution network.
- 01AICPDF warns of significant disruptions to kirana stores due to Zepto's IPO.
- 02An estimated 1 million kirana stores may shut down in the coming years.
- 03Zepto's revenues surged from ₹4,454 crore in FY24 to ₹9,669 crore in FY25.
- 04The company has raised nearly $2.3 billion and is valued at around $7 billion.
- 05AICPDF requests regulatory measures to safeguard traditional retail against aggressive pricing.
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The All India Consumer Products Distributors’ Federation (AICPDF) has written to Prime Minister Narendra Modi expressing concerns about Zepto's proposed initial public offering (IPO) and its potential negative impact on traditional fast-moving consumer goods (FMCG) distribution. The letter highlights that the rise of quick-commerce platforms like Zepto and Blinkit has led to the closure of nearly 200,000 kirana stores in the financial year 2024-2025, with projections indicating that 1 million stores could shut down by FY26 due to pricing pressures and loss of sales. Existing retailers have reported a 25 to 30 percent decline in sales, particularly in urban areas. The AICPDF noted that the market share of kirana stores in FMCG distribution has decreased from 81 percent to 79 percent. Zepto, founded in 2020 and rebranded from KiranaKart, has experienced rapid growth, with revenues soaring from ₹4,454 crore in FY24 to ₹9,669 crore in FY25, although losses widened to approximately ₹3,367 crore. The federation has requested that the IPO be delayed and called for regulatory scrutiny of predatory pricing practices by quick-commerce platforms to protect the sustainability of traditional retail.
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The potential closure of 1 million kirana stores could lead to significant job losses and reduced access to affordable goods for consumers, particularly in rural and semi-urban areas.
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