Zepto is a quick grocery delivery startup that originated or came to be in India in 2021. Zepto is becoming a leading provider of fast grocery delivery services.
This is a narrative about the growth of Zepto from an idea in someone’s head that ultimately became a huge company in India.
We will examine who began Zepto, in what way they earned money, by what method they expanded rapidly, and also the prizes won by them.
It is a thrilling narrative about tackling commonplace issues with fresh perspectives and determination.
You may either have a business mind or simply be curious about how things can be delivered so fast.
When you read Zepto’s experience, it teaches you that indeed small things that young people plan may entirely alter how individuals purchase or exist.
Okay, let’s get started and observe the revolution Zepto is in the world of grocery delivery.
Who is Zepto’s founder, and its team details?
Zepto was founded by acquaintances since childhood, Aadit Palicha and Kaivalya Vohra, who were both 19 years old.
An alternative decision was made to quit the well-known computer science program at Stanford University and return to India to set up a company.
Kaivalya Vohra
Kaivalya Vohra helps run Zepto as the CTO and Co-Founder. Before this, he started and ran KiranaKart as the CTO.
He went to Stanford University to study Computer Science, but like his friend Aadit, he decided to stop going to school.
Kaivalya and Aadit also took part in a program called Y Combinator.
Aadit Palicha
Aadit Palicha is in charge of Zepto as the CEO and Co-Founder. He also started and ran KiranaKart as the CEO.
Aadit went to Stanford University to study Computer Science after high school, focusing on Math and Computer Science.
But he stopped going to school to start his company. Aadit then finished a program called Y Combinator and worked on a project called PryvaSee. When Aadit was only 17, he started his first company called GoPool. He left GoPool in April 2020 and then started KiranaKart, which led to Zepto.
What is Zepto’s growth?
Zepto has experienced rapid growth since its inception.
In India, Zepto gets a small fee every time someone orders from their grocery app. The fee which typically lies between 2-3% of the amount charged is used to keep the app up and running to ensure a great user experience.
In eight rounds of financing, Zepto won slightly less than $1.3 billion from financiers.
This set the stage for junior management in startup entrepreneurship since it was the pioneer unicorn valued at over one billion dollars in 2023.
Recently, there has been a drastic increase in Zeptos population. They earn 800% more now while spending 5% less on each served order. They grow very rapidly because they receive 50 percent more customers every month.
What is the Startup Story of Zepto?
Zepto’s inception genesis involved addressing India’s inefficient grocery delivery issues.
Palicha and Vohra were studying Computer Science at Stanford, but they left school to work on their business idea instead.
Zepto started during the COVID-19 pandemic. Palicha and Vohra got the idea while they were stuck at home. They saw that many people wanted things delivered, but it took days to get groceries and other important stuff. So they created Zepto to deliver things quickly.
These young founders were suddenly stuck in their homes in Mumbai because of COVID rules. They had worked together before on other projects, like an app for kids to get rides. When the pandemic hit, they had trouble getting groceries, even though most places still allowed grocery delivery.
Before Zepto became famous, Palicha and Vohra had another business called KiranaKart. It didn’t get as much attention, but it gave them the idea for Zepto. KiranaKart was also a grocery delivery service. They worked with small grocery stores to deliver things in 45 minutes or less. They got $730,000 from some investors to start the business. Back then, Vohra and Palicha planned to do the first 150,000 deliveries for just 1 Indian Rupee each.
What is Zepto’s Mission and Vision?
Zepto wants to change how people get groceries online by bringing them quickly, in just 10 minutes. They plan to deliver more than 3,000 items in 10 minutes or less.
Zepto aims to make convenience a standard feature of urban life in India.
Living alone as young men, the founders found it hardest to get food. So, they made their apps focus on bringing groceries. Their first business, KiranaKart, tried to make it easier for small stores to deliver groceries. But Zepto aims to make deliveries happen faster.
What is Zepto’s Name, Tagline, and Logo?
The company’s name, “Zepto,” means a very tiny amount of time
Zepto’s tagline is “Groceries delivered in 10 minutes”.
The company’s logo is a bright reddish-pink color. It’s easy to notice and remember, and it sticks in customers’ minds for a long time.
What are Zepto’s Products and Services?
Especially, Zepto allows users to receive everyday essentials and groceries quickly.
The selection of goods offered by the business is completely dedicated to fresh manufacture, dairy production, baking products, snack food production, etc. The choice consists of personal hygiene products and all kinds of stuff for household needs.
Zepto’s primary service is destined to deliver these items through its mobile app within minutes of making an order.
What is Zepto’s Business Model?
Zepto operates on a quick commerce model using a network of dark stores.
The company maintains a network of micro-warehouses or “dark stores” strategically located in dense urban areas. This allows Zepto to fulfill orders quickly and efficiently. The business model relies on advanced technology for inventory management, order processing, and route optimization.
Zepto brings groceries in ten minutes by using hidden stores and small warehouses. They do this for up to 90% of their orders. Zepto is part of the quick delivery business in India. They focus on making customers happy and giving them very fast service.
To make sure deliveries go smoothly, Aadit says they usually take 8 minutes and 47 seconds. The company, which is based in Mumbai, uses small stores in busy areas to handle online orders.
A hidden store is a small warehouse in a neighborhood that customers can’t visit, but they can buy from it online and get their items delivered. While these hidden stores aren’t new in India, Aadit thinks there’s still more that can be done with this idea.
What is Zepto’s Revenue Model?
Zepto generates revenue through product sales and delivery fees.
The company likely earns a margin on the products it sells.
Moreover, Zepto can charge for delivery, but mostly they don’t. This happens during their promotions.
For highlighted placements or promotions, brands could be sharing revenues with the company”
What Challenges Does Zepto Face?
Zepto experiences challenges related to stiff rivalry, operation effectiveness, and earnings.
India’s fast-developing e-commerce sector is a highly competitive market where we find established companies including Swiggy and Dunzo.
In order to continue offering a ten-minute delivery time, profitability must be guaranteed by Zepto.
Various issues to deal with are handling fresh inventory, expanding operations, and flighting regulatory issues across various cities.
Zepto Funding and Investors
There is considerable funding from investors that has been raised by Zepto.
A total of $1.3 billion in funding across eight rounds has been acquired by Zepto, a startup from Mumbai.
They raised $665 million on June 21, 2024, during their previous funding which took place at the series F series.
Another $400 million is what they’re discussing getting, which would additionally cause the company to be worth increased to $4.6 billion.
The Zepto valuation hits $3.6 billion, in June 2024.
The company’s first small funding in September 2020 was led by a group called Contrary. The business achieved a valuation of $1.4 billion as a result.
Before this, an Indian startup being a unicorn had not happened for 11 months and that made it a huge deal.
This funding was led by a group called StepStone Group and it also involved others such as Goodwater Capital and some other investors who were already on board.
What are Zepto’s Investments?
Zepto, an Indian company that delivers groceries within less than ten minutes, received $665 million from both its already existing and new investors during the month of June 2024.
This capital increase has increased the company’s wealth by $3.6 billion compared with August 2023, when it was $1.4 billion, the team leader commented.
New investors included Avenir, Lightspeed, and Avra. Old investors who put in more money included Glade Brook Capital, Nexus Venture Partners, and StepStone Group.
What are Zepto’s Acquisitions?
As of my last update in April 2024, Zepto had not made any notable acquisitions.
Being a young startup focused on rapid growth, Zepto has primarily concentrated on organic expansion rather than growth through acquisitions. However, this strategy could change as the company matures.
What are Zepto’s Financials?
There have been substantial gains and investments in Zepto’s 2022-23 financial performance.
In fiscal year 23 the company had its revenues grow 14.3 times through a leap from Rs.140.7 crore last year to Rs.2,024.3 crore.
Besides, this fast growth caused massive losses, Its net loss increased by 3.4 times compared to the previous year, reaching INR 1272.4 crore in FY23.
It’s important to note the unique and quite fast rise of Zepto in the market and the huge financings that are being written up to ensure that the company grows and develops in the future.
What are the Expenses Breakdowns of Zepto?
In the financial year 2023, the total costs of the platform grew by 530% to reach Rs 3,350 crore, up from Rs 532.7 crore in the financial year 2022.
The total costs are estimated to be Rs 3350 crore, an amount that is six times higher than that in FY22 and amounted to only Rs 532.7 crore.
This shows that Zepto spent about 1.7 rupees in obtaining one rupee within the year.
This is down from Rs 3.7 it had to spend in FY22 for each rupee earned.
On the other hand, the company’s expenditure pattern changed drastically when it considerably increased its expenses by five times in FY23 compared to the previous year.
Greater purchase of stock-in-trade was a key driver behind the increase in expenses, causing them to stand at 50% of the total expenses in FY23, compared to 28% during the previous fiscal year, as per Historical Performance Summary Report: Zepto 2024, published on March 28, 2024, at Private Circle.
What is the EBITDA of Zepto?
In May 2024, Zepto will claim that 75% of its dark stores are EBITDA positive.
According to the fast-growing company in terms of trade, near EBITDA profitability has been achieved with 140% year-on-year growth on a base of more than $1 billion annualized GMV.
What are the Sponsorships of Zepto?
Zepto has mainly focused its marketing strategy on digital channels and direct customer acquisition, instead of big sponsorships, because it is still a young company.
The company could engage in event sponsorships or local partnerships to increase the visibility of the brand.
Zepto has big brand advertisers and sponsors from FMCG, E-Commerce, Wellness, Mobile Accessories, BFSI, Automobiles, and Service Provider background
When does Zepto plan to go public (IPO)?
As of the last update in April 2024, Zepto had not announced concrete plans for an IPO.
What is Zepto’s Value Proposition?
Zepto is a service that lets you get your groceries delivered within 10 minutes.
The company needs customers to visit grocery stores or wait for long delivery times, aiming to provide unparalleled convenience.
In addition, Zepto has a diverse variety of products, charges competitive rates, and it offers a mobile platform that customers can use to place orders easily.
Zepto has one value proposition: fast delivery purpose and aims to deliver groceries within 10 minutes.
What are Zepto’s Awards and Achievements?
Zepto has been defined as rapidly growing and having an innovative business model.
Zepto has been doing well on LinkedIn’s Top Startups list since 2022. Every year, LinkedIn releases its Top Startups list that reveals some wonderful Australian success records as years go by.
Moreover, Zepto has been highlighted as one of the globally most popular apps from India with downloads in millions from across the globe.
What are Zepto’s Partnerships?
We have teamed up with Reverie language technologies to help bring localization to our Zepto rider app to change the way we interact with our delivery partners.
A sign that Zepto stands by inclusivity and advancement in technology is its partnership directed at the localization of the Zepto rider app.
Who are Zepto’s Competitors?
Other quick-commerce and grocery delivery platforms in India are Zepto’s main rivals.
Swiggy’s Instamart, Dunzo, Blinkit (previously known as Grofers) and BigBasket.
In numerous Indian cities, quick delivery services are also provided by these businesses.
Aside from that, Zepto has to contend with the longstanding grocery stores as well as the e-commerce sites that avail groceries through delivery.
What are Zepto’s Future Plans?
Zepto aims to continue expanding its activities in the fast commerce industry.
Bengaluru, Mumbai, Delhi, Gurugram, Noida, Ghaziabad, Hyderabad, Chennai, Pune, and Kolkata. By 2024, they intend to be profitable.
The company’s future plans likely involve expanding its dark store network, increasing its dark store network, and possibly diversifying its range of products.
To make a profit, Zepto may also focus on improving its technology platform, becoming more efficient in operations, and exploring new ways to generate income.
