Home Success Story Zepto Success Story | Business model and case study 2022

Zepto Success Story | Business model and case study 2022

Success Story of Zepto

Zepto is a grocery shopping app that delivers groceries in 10 minutes. Customers can choose from thousands of popular items including farm fresh vegetables and fruits, groceries, dairy and more at Zepto best prices and a Zeptonian Rider will be at the door in about 10 minutes. Zepto is growing at a 200% increase in price in 11 months, with 60% repeat customers.

In April 2021, two friends, Kaivalya Vohra CTO and Aadit Palicha CEO, both 19 years old, formed Zepto. Both were admitted to Stanford University and were scheduled to acquire a Bachelor of Computer Science, but instead chose to build Zepto. In early September 2020, they started Kirana Mart which was a supermarket delivery startup similar to Big Basket and Grofers. However, until January 2021 it was known as Zepto.

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About Zepto

Zepto, a startup based in Mumbai, offers a 10 minute grocery delivery service. Aadit Palicha and Kaivalya Vohra launched Zepto, a company known for delivering groceries in 10 minute.

Zepto Success Story

Worked with 86 dark store owners in thirteen different areas in 2021, generating over a million deliveries. To fulfill orders promptly, Zepto uses its network of ‘cloud stores’ or micro warehouse.

Zepto secret is its ability to routinely produce over 2,500 product for delivery in less than ten minute. It’s at the heart of everything the firm does, and that why they’ve been able to develop so quickly while maintaining incredible customerm loyalty.

With the idea of ​​the dark stores, the Parel based express grocery delivery business has reduced the time it take to deliver groceries to just 10 minute. Express trade is reportedly the next important step that the supermarket delivery sector hopes to capitalize on. Startups like Zepto in India and Fridge No More in New York City are among the fastest growing companies in the faster delivery business.

Zepto Highlight

Startup NameZepto
Legal Business NameKiranaKart Technologies Private Limited
Zepto HeadquartersParel, Maharashtra, India
IndustryDelivery Service, and Grocery
Zepto FoundersAadit Palicha & Kaivalya Vohra
Total Funding$360 mn (May 2022)
Valuation$900 mn (May 2022)
Current CEOAadit Palicha
Areas ServedIndia

Zepto Business Model and Revenue Model

Zepto delivers groceries in ten minute through a system of dark storefront & mini warehouses, on up to 90% of order. Zepto work in the fast trading segment of India. It is designed to be customers centric & built around the instant service model.

To ensure a seamless delivery experience, Aadit says his average delivery times is 8 minute and 47 second. Through a chain of dark stores or retail distribution center, the Mumbai based company employ a hotspot approach to largely cater to digital shoppings.

A dark store is a small neighborhood store that customer can’t visit, but shop online to receive packaged delivery. While dark store are not new to the Indian industry, Aadit believes the idea has yet to be fully explored. Population, traffic dynamic, topography, road patterns, weather conditions, last mile operational improvement, real estate prices and other geographic data and local intelligence help Zepto optimize your connectivity. In addition, the startup dark warehouses and cold rooms are custom designed to meet particular criteria, such as ease of travel, allowing packer to move as quickly as possible to fill order.

Location intelligence and geographic data such as topography, population, road patterns, traffic dynamic, weather, last mile supply availability, real estate values, etc. are said to help Zepto to optimize your network.

Zepto’s 10 Minute Delivery

10 Minutes Delivery

Zepto introduced its notion of 10 minute delivery. The whole sports and the situation were altered. Customer were agitated, but there was little they could do about the loss of many possibilities in the market. Zepto exploited people’s impatience with its 10 minutes delivery value proposition.

Zepto Industry

Electronic grocery delivery is gaining traction in India with a $1 trillion retail markets where grocery purchases account for the vast majority of consumers spending. The Indian electronic grocery markets was valued at $2.9 billions in 2020 and is expected to grow at a rate of 37.1% between 2021 & 2028.

The sector has expanded in prevalence in recent month as a result of evolving customers habit, increasing urbanization & a tech savvy generation that prefer to shop online.

A report by Redseer mentioned that the fast trading segment was valued at $30 millions in 2021. The same segment was predicted to become a $5 billion markets in 2025, with 15X growth.

As their standard of living rises & their daily schedules become more stringent, consumer are flocking to convenient, personalized internet platform to shop for groceries instead of walking to local stores.

After pandemic, the popularity of online grocery delivery became more & more apparent. As a consequence of social distancing restriction, consumer are turning to online grocery shopping, which is not only convenient but also safer.

Zepto Founders and Team

Aadit Palicha and Kaivalya Vohra, both 19 Year old childhood friend, created Zepto after leaving Stanford University renowned computer science departments to return home to India and start a business. The firm was founded in September last years & started operations in April this year.

Addit Palicha

Aadit Palicha is the CEO and Co founder of Kirana Kart and Zepto. After completing an IB diploma from (GEMS Education) in Mathematics and Computer Science, Palicha completed a bachelor degree in Computer Science from Stanford University. Aadit then completed Y Combinator Grade (W21) & started with PryvaSee as project lead. Aadit Palicha later founded GoPool, his first startups, when he was just 17 year old. He left the company in April 2020 and founded Kirana Kart and then Zepto.

Kaivalya Vohra

Kaivalya Vohra is the Co Founder and CTO of Kirana Kart & the Co Founder and CTO of Zepto. He also graduated in Computer Science from Stanford University and was also involved in Y Combinator, along with Aadit.

Zepto Shareholdings

Zepto is backed by nine investors. The most recent investors are Contrary and Glade Brook Capital Partners. The company is valued at Rs 4,200 crores $570 million, and has raised a total of Rs 1,200 crores $160 million.

Zepto Starting Story

Many of us have startups idea, but even the most creative struggle to see them through. Palicha & Vohra had enrolled at Stanford to pursue a Computer Science degree, but dropped out to pursue their business passion.

During the Covid outbreak, the concept for Zepto grew out of the limitation of their home. An increase in demand for delivery services meant that groceries & other necessities would arrive in a couple of days, creating a void for fast delivery. As a result, Zepto was created with all this information.

These teenagers were abruptly stopped, due to Covid regulation, detained in their Mumbai home after significant collaboration on many project, including a transportation app for children. Despite the fact that grocery delivery, which was considered important by local authorities, was still allowed in much of the country as the virus spread, the duo struggled to get their supplies as the disease spread.

While Zepto is in the spotlight, Palicha & Vohra first venture, Kirana Kart, did not receive the same acclaim. Zepto, on the other hand, is inspired by Kirana Kart. KiranaKart, as the name implies, was a supermarket delivery service. He had made arrangement with Kirana merchant to provide groceries in 45 minutes or less. Global Founder Capital, 2 AM Ventures, Contrary Capital & angel investor led a pre seed round of $730,000. At that time, Vohra & Palicha planned to make the first deliveries of 1.5 lakh at a cost of Rs 1.

Zepto Mission and Vision

As two singles living alone, the founder found it more difficult to get food, so they focused their app on grocery delivery. So while Kirana Kart, his first startup, tried to make grocery delivery easier for Kirana, Zepto aims to shorten delivery time.

Zepto future goals

In the future, Zepto intends to increase the number of dark store to increase the number of order. Once they start retaining customer, they want to starts charging convenience fees. Although Zepto may face serious dangers in the near future due to the fierce rivalry, it is amazing how two 19 year old boy jump up and shake the root of massive corporations like Big Basket or Blinkit among other. It could also announce its public listing in 2 or 3 years.

Zepto Challenges

Zepto has faced some challenge lately, and in one of the recent ones, there were instances of a founder and investors being wrong within the fast trading delivery startups. Ansh Nanda, an alleged co founder of the startups, said the other co founder a& nd Nexus Ventures forced him to give up his stake in the startups. This was brought forward by Nanda, who filed an FIR against Zepto co founder & Nexus Ventures partner Suvir Sujan. However, the co founder promptly responded to the same by approaching the Delhi High Court. Zepto is the third startups backed by Nexus and where one of the co founder has been named in an FIR. Yolo Bus & Acko were two other companies that dealt with the same thing before.



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