In just a few short years, Zepto has gone from an ambitious idea to a $5 billion grocery delivery powerhouse. What started as a response to slow lockdown deliveries during COVID-19 is now India’s fastest-growing quick commerce startup, making over Rs 4454 crore in revenue and redefining urban convenience. With deliveries in under 10 minutes and an ever-expanding dark store network, Zepto has revolutionized how Indians buy daily essentials.
Meet the Founders: Teenage Visionaries
Aadit Palicha and Kaivalya Vohra, childhood friends and Stanford University dropouts, launched Zepto in 2021. At just 19, they decided to leave one of the world’s top computer science programs to pursue entrepreneurship back home in India. Before Zepto, they had founded KiranaKart, a 45-minute grocery delivery app. Their experience and understanding of India’s urban delivery gap helped them pivot to the lightning-fast model that Zepto is known for today. Both founders were part of Y Combinator’s W21 batch, which gave them global exposure and early investor trust.
Building Zepto: The Need for Speed
The idea for Zepto was born during the pandemic when Aadit and Kaivalya noticed the inefficiencies in grocery delivery systems. Delays lasting several days became the norm. They envisioned a system that could bring groceries to customers in under 10 minutes—something never attempted at scale in India before. With an initial $730,000 in pre-seed funding from investors like Global Founders Capital and 2 AM Ventures, they launched Zepto in April 2021. The platform uses dark stores—small, strategically located warehouses—to fulfill up to 90% of orders, averaging an impressive 8 minutes and 47 seconds per delivery.
How Zepto Works: Tech + Warehouses
Zepto’s innovation lies in its logistics model. Unlike traditional retailers, it uses a network of dark stores that are not open to the public but serve as hyper-local fulfillment centers. Advanced algorithms use data on traffic patterns, weather, demand spikes, and even local real estate trends to place these stores optimally across metro cities. This allows Zepto to minimize travel time and meet the 10-minute delivery promise. Each store stocks thousands of items including groceries, snacks, beverages, baby care, and more. With over 1,000 employees and dark stores in every major metro, Zepto is leading India’s quick commerce revolution.
Revenue and Monetization
Zepto’s revenue model includes:
- Direct-to-consumer (D2C) product sales via its app
- Private label brands to boost margins
- Zepto Café, an in-house café model offering coffee and ready-to-eat food By FY24, Zepto hit INR 4454 crore in revenue, up from INR 1,272 crore in FY23. Their café business is projected to reach INR 1,000 crore in annual revenue by FY26.
Competitors in the Race
Zepto operates in a competitive space with major rivals like:
- Swiggy Instamart
- Blinkit (by Zomato)
- BigBasket Now
- Dunzo Xpress Mart Each player is racing to optimize delivery speed and coverage, but Zepto’s tech-first approach and youthful brand have given it a strong edge with Gen Z and millennial users.
What’s Next: IPO, Expansion, and Profitability
Zepto plans to go public by 2025 and is aggressively expanding its footprint with 100 new dark stores every month. Their aim is to achieve profitability by mid-2024. The expansion of Zepto Café, now operating in 15% of stores, and a focus on Tier-2 cities are part of its roadmap to dominate Indian quick commerce. Zepto also plans to introduce AI-driven inventory management, real-time delivery tracking, and localized supply chains to further optimize operations.
Wrapping Up
Zepto’s story is a modern entrepreneurial marvel—a tale of bold decisions, fast execution, and relentless innovation. From two teenagers skipping Stanford to a $5 billion valuation, Zepto is transforming how India shops for groceries. With its rapid delivery promise and scalable tech infrastructure, Zepto is not just changing grocery delivery—it’s shaping the future of eCommerce in India.
Frequently Asked Questions (FAQs)
Q1. What is Zepto, and how does it work?
Zepto is a quick commerce startup that delivers groceries and essentials in under 10 minutes using dark stores and advanced delivery logistics.
Q2. Who founded Zepto and when?
Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra, two 19-year-old Stanford dropouts who wanted to fix grocery delivery inefficiencies in India.
Q3. How does Zepto deliver so fast?
Zepto uses a tech-enabled network of dark stores, combined with hyperlocal data like traffic, weather, and demand trends to ensure fast and reliable deliveries.
Q4. What is Zepto Café?
Zepto Café is the company’s in-store food and beverage model offering coffee and ready-to-eat meals, now contributing significantly to revenue.
Q5. Is Zepto planning an IPO?
Yes, Zepto aims to launch its IPO in 2025 and reach profitability by the end of 2024 as part of its next major growth phase.