Decathlon India, a renowned sports and fitness retailer, has entered into a strategic partnership with Zepto, a prominent quick-commerce platform. This collaboration aims to significantly enhance the delivery speed and accessibility of sports and fitness products for customers across India. Announced on Friday, this partnership reflects both companies' commitment to catering to the rising demand for active lifestyles and quick delivery services.
Starting in September, customers in 16 major cities will benefit from this new service, which includes cities like Mumbai, Bengaluru, Delhi-NCR, Chennai, and Hyderabad. Through Zepto's platform, users will have access to a comprehensive range of Decathlon products. This selection spans various categories including fitness equipment, outdoor gear, water sports accessories, team sports gear, and more. The inclusion of these cities marks a significant expansion in Decathlon's reach, aiming to serve a larger and more diverse customer base with faster delivery times.
This partnership aligns with Decathlon's broader strategic goals for expansion in India. The retailer plans to invest ₹933 crore over the next five years, with ambitions to increase its number of stores from 127 to 190. This expansion plan includes a stronger focus on digital engagement and an enhanced make-in-India strategy. Currently, 68% of Decathlon’s products sold in India are locally manufactured. The company has set an ambitious target to raise this figure to 85% by 2026, reflecting its commitment to supporting local manufacturing and increasing its domestic footprint.
Zepto, which has recently secured nearly $1 billion from private investors, is exploring the possibility of launching an initial public offering (IPO). The Mumbai-based quick-commerce firm is in talks with leading Wall Street banks such as Morgan Stanley and Goldman Sachs, as well as domestic investment banks, to prepare for a potential listing by August of the following year. The timing of the IPO will be influenced by Zepto’s ongoing efforts to relocate its headquarters from Singapore back to India—a trend observed among several Indian startups aiming to strengthen their domestic presence.
Zepto's potential IPO comes against a backdrop of increasing competition in the quick-commerce sector. Rivals such as Swiggy are preparing for their own substantial IPOs, with a planned $1.25 billion offering, while Blinkit, which is owned by publicly traded Zomato, continues to expand its market presence. As Zepto positions itself in this competitive landscape, the company plans to raise approximately $450 million through the issuance of new shares and an offer for sale by existing investors. This financial strategy aims to bolster Zepto’s market position and support its continued growth in the rapidly evolving quick-commerce industry.
Conclusion
The partnership between Decathlon India and Zepto represents a significant advancement in the accessibility and speed of sports product deliveries in India. With Zepto's rapid delivery service, Decathlon's extensive product range will reach customers more efficiently across 16 major cities. This collaboration supports Decathlon's expansion efforts and aligns with Zepto's ambitious growth plans, including a potential IPO and a strategic shift back to India. As both companies navigate the evolving market dynamics, their joint venture highlights a commitment to enhancing customer experience and responding to the growing demand for quick-commerce solutions.