Stanford Dropouts to Startup Stars: The Birth of Zepto During a Pandemic Panic

Zepto, the rapidly growing online grocery delivery company, was founded by Aadit Palicha and Kaivalya Vohra.  Palicha serves as the CEO of Zepto. By 2021, the startup reached 1 million orders, associated with 86 grocery businesses and achieved a valuation of $570 million within 5 months.

Aadit Palicha, born in Mumbai in 2001, obtained his International Baccalaureate (IB) diploma in mathematics and computer science from GEMS Academy in Dubai. He held leadership roles as the deputy head boy and president of the Modern Debating Society. Following his high school achievements, he enrolled in a computer science bachelor’s degree program at Stanford University. While at Stanford, Palicha served as the project lead at PryvaSee, an artificial intelligence project focused on summarizing privacy policies. Before Zepto, Palicha and Vohra co-founded GoPool, a mobile application addressing school-related transportation needs in Dubai. (Aadit Palicha)

Kaivalya Vohra also began his higher education at Stanford University, pursuing a degree in Computer Science. Born on March 15, 2003, in Bengaluru, India, Kaivalya Vohra pursued his early education at Dubai College. During his time there, he held leadership roles such as deputy head boy, captain of the under-19 basketball team, and founder of the school’s Computer Society. (Kaivalya Vohra)

However, both Palicha and Vohra decided to discontinue their studies at Stanford to pursue entrepreneurship. The COVID-19 pandemic played a pivotal role in the genesis of Zepto. After returning to Mumbai in 2020, and facing challenges in procuring groceries during quarantine, they identified a gap in the market for rapid grocery delivery. This led to the conceptualization of KiranaKart, an app offering immediate grocery delivery in Mumbai. While they initially pursued KiranaKart, they faced challenges in achieving a strong product-market fit. They learned from this venture, and eventually transitioned to Zepto in April 2021. Zepto’s founding premise revolved around delivering groceries within a remarkably short timeframe of 10 minutes.

India’s Quick Commerce Boom: Why 10-Minute Grocery Delivery is the New Normal

The Quick Commerce (Q-Commerce) market in India is currently experiencing a transformative growth phase, driven by increasing consumer demand for fast and convenient delivery services. The Indian Q-Commerce market is segmented by product type (groceries, personal care, fresh food, and others), company type (pureplay and non-pureplay), and geographic region (East, West, North, and South). (Mordor Intelligence)

The Indian quick commerce market was valued at USD 3.49 billion in 2025 and is projected to reach USD 4.35 billion by 2030, registering a CAGR of greater than 4.5% during the forecast period (2025-2030).

The quick commerce market in India is witnessing a significant growth rate because it provides consumers faster shopping experiences than traditional e-commerce platforms. This increased adoption is attributed to the fast and convenient delivery services offered. Rising urbanization and the growing trend of online shopping also contribute to the expansion of the Q-Commerce industry in India.

The COVID-19 pandemic provided a significant boost to quick commerce, as it became an integral part of people’s lifestyles. Although the pandemic’s peak has passed, the market continues to experience high demand in the food and retail sectors due to the convenience of on-demand delivery and digital offerings. 

There has been an increased purchasing rate in metro and Tier I cities in India because of the fastest delivery of groceries and other products, driving the quick commerce market in the country. Companies are increasingly leveraging geographical mapping technologies to establish dark stores (delivery-only micro-fulfillment centers) to optimize delivery times. This allows them to deliver over 60% of orders within 40 minutes.

Groceries at Warp Speed: Zepto’s Mission to Redefine the Modern Kirana

The company’s mission is to revolutionize the way people shop for groceries, offering unparalleled speed and convenience. Zepto operates with a clear vision: to become the go-to platform for instant grocery needs, transforming the traditionally time-consuming task of grocery shopping into a seamless and effortless experience.

The company addresses a significant pain point for urban consumers: the lack of readily available and rapid grocery delivery options. By offering deliveries within 10 minutes, Zepto solves the problem of time constraints and spontaneous needs. It caters to customers who require groceries urgently, eliminating the need for extensive planning or trips to the store. This quick-commerce model particularly resonates with busy professionals, families, and individuals seeking immediate access to essential household items and fresh produce.

Zepto’s business model is centered around a network of strategically located “dark stores,” which are distribution outlets not open to the public. These micro-warehouses enable the company to quickly and accurately fulfill orders, providing shoppers with resources and options like purchasing products online, same-day delivery, or pickup in-store.

The Dark Store model curbs the trivial challenges any delivery service faces, traffic congestions, navigation, and connectivity. Zepto says utilizing location intelligence, geography, population, road patterns, traffic dynamics, weather, last-mile supply availability, real estate values, and so on, to improve network’s performance. Currently, it has over 70 dark stores in various locations.

From a revenue perspective, Zepto’s model primarily relies on charging a commission fee to the grocery stores for every order placed through the app. The commission, the percentage of the total order value, varies depending on the store’s agreement with Zepto. The company also charges a delivery fee from customers, and a subscription.

Beyond the Grocery Aisle: How Zepto Stacks Up With Tech, Speed & Service

Zepto distinguishes itself in the quick commerce landscape through a comprehensive suite of products, innovative solutions, and customer-centric features. This multifaceted approach caters to a broad spectrum of needs, ensuring a seamless and satisfying shopping experience.

1. 10-Minute Delivery Promise

Zepto’s flagship feature is its ability to deliver groceries and essential items in as little as 10 minutes. This is made possible through:

• Strategic Micro-Warehousing: A network of dark stores (micro-fulfillment centers) located within high-density urban areas to reduce last-mile distance.
  
• Smart Inventory Management: Real-time tracking and replenishment systems to ensure item availability without overstocking.
  
• Route Optimization Algorithms: Proprietary logistics software that ensures riders take the fastest and most efficient paths to their destinations.

2. Robust Tech Stack

Zepto leverages a powerful technological foundation that includes:

• AI-Driven Demand Forecasting: Predicts what products will be needed where and when, reducing stockouts and waste.
  
• Dynamic Pricing Engine: Adjusts pricing based on demand, availability, and market conditions.
  
• Customer Behavior Analytics: Personalizes user experiences by analyzing browsing and purchasing patterns.

3. User-Centric Mobile App

Designed with simplicity and speed in mind, Zepto’s app features:

• Instant Search and Smart Suggestions: Enables users to quickly find what they need with minimal effort.
  
• Real-Time Order Tracking: Transparency from cart to doorstep, with live updates on order status.
  
• Seamless Payments: Supports multiple payment options including UPI, credit/debit cards, and wallets with one-tap checkout.

4. End-to-End Logistics Ecosystem

Zepto’s in-house logistics solution includes:

• Fleet Management System: Assigns delivery personnel based on location, traffic, and workload.
  
• Rider App: Empowers delivery partners with efficient route navigation, order details, and real-time communication.
  
• Performance Monitoring: Tracks key metrics like delivery time, customer feedback, and rider efficiency.

5. Scalable Dark Store Model

The modular setup of Zepto’s dark stores allows:

• Rapid Expansion: New stores can be set up within weeks to meet growing demand in new neighborhoods.
  
• Local Customization: Product assortments are tailored to the preferences of nearby customers using localized insights.

6. Partner and Vendor Integrations

Zepto provides robust tools for supply chain partners and vendors:

• Supplier Dashboards: Offer real-time insights into inventory levels, sales trends, and restocking alerts.
  
• API Integrations: Seamless syncing with vendor ERP systems for automated invoicing and inventory updates.

7. Sustainability Initiatives

Committed to reducing its environmental footprint, Zepto incorporates:

• Eco-Friendly Packaging: Use of recyclable and biodegradable materials wherever possible.
  
• Efficient Routing: Reduces fuel usage and emissions by optimizing delivery paths.
  
• Local Sourcing: Works with nearby vendors and farmers to cut down on transportation emissions.

8. Customer Support & Engagement

Zepto ensures continuous user satisfaction through:

• 24/7 Customer Service: Available via chat, email, and phone for immediate issue resolution.
  
• Feedback Loops: In-app rating and review systems that feed into quality assurance mechanisms.
  
• Loyalty Programs: Incentives and rewards for frequent users to boost retention and engagement.

From Zero to Unicorn: Capturing 28% of India’s Quick Commerce Market

Zepto, since its inception in July 2021, has made a substantial impact on India’s rapidly evolving quick-commerce sector. Demonstrating impressive growth in a short span, Zepto has captured a significant portion of the market. As of January 2024, the company held a 28% market share, a notable increase from 15% in March 2022. 

This places Zepto among the leading players in the industry, competing with established giants like Blinkit and Instamart. Zepto operates over 250 dark stores across ten metropolitan areas in India. The company has successfully delivered on its promise of 10-minute deliveries. Zepto’s extensive reach and operational efficiency are key contributors to its market success.

Zepto’s GMV has surpassed $1 billion, highlighting its strong market position. With over 75% of its dark stores achieving profitability at the core operating level. Zepto’s recognition extends beyond market share and financial metrics. A significant milestone for the company was achieving unicorn status in 2023. This prestigious designation reflects its rapid growth and market valuation exceeding $1 billion. Zepto has demonstrated a commitment to sustainable practices through collaborations like the ‘Return and Recycle’ initiative with Coca-Cola India. 

During a 60-day pilot in Mumbai, this initiative collected over 100 kilograms of PET bottles. This highlights Zepto’s environmental responsibility. The company also focuses on technological integration to improve customer convenience. The integration of Buy Now, Pay Later (BNPL) services through partnerships with platforms like LazyPay, demonstrates Zepto’s focus on providing seamless and flexible payment options for its customers.

Charging Ahead: Zepto’s Bold Moves with EVs, BNPL, and Big-Name Brands

For sustainable delivery, Zepto has forged alliances with electric vehicle providers. In August 2023, Zepto partnered with Yulu to deploy 20,000 next-generation shared DeX electric vehicles for its delivery partners. This initiative aims to expand Yulu’s presence in the hyperlocal delivery market across major metro cities such as Bengaluru, Mumbai, Delhi, and Gurugram. It also supports Zepto’s goal of transitioning to a fully electric delivery fleet, promoting eco-friendly operations. Furthermore, a partnership with Zypp Electric, started in July 2022, focuses on last-mile deliveries using electric two-wheelers. This collaboration initially involved over 1,500 e-two-wheelers facilitating more than 20,000 deliveries per day in Delhi, with plans for expansion into Bengaluru and Mumbai.

Beyond mobility, Zepto has also collaborated with other brands. In October 2024, Zepto partnered with Ambrane, a consumer electronics and charging products brand. This collaboration enables Zepto to offer electronics and charging solutions, including power banks, chargers, and cables, to customers across its hyper-local delivery network in over 17 cities. Zepto also expanded its collaboration with Coca-Cola India in May 2023 to reinforce their commitment towards plastic circularity through the ‘Return and Recycle’ initiative.

To enhance the customer shopping experience, Zepto partnered with LazyPay in April 2022 to integrate Buy Now, Pay Later (BNPL) services into its platform. This integration allows Zepto customers across various cities to access LazyPay’s BNPL solutions, providing flexible payment options and reducing cart abandonment rates.

Zepto has also collaborated with Park+ to provide 10-minute delivery of premium car care products. The initial offering includes 15 products, such as cleaning kits, comfort accessories, and maintenance tools, with plans to expand to over 150 items within three months. 

In partnership with DailyObjects, Zepto also provides  essential tech accessories. This includes wireless power banks, charging docks, and fast chargers, meeting the growing demand for quick access to essential tech products.

Billions on the Clock: Zepto’s Race to $5 Billion and the Investors Fueling It

Zepto has secured a total equity funding of $1.95 billion across 10 rounds. This funding comes from a diverse investor base comprising 71 investors, including 54 institutional investors and 17 angel investors. As of August 14, 2024, Zepto’s post-money valuation stands at $5 billion. (Tracxn)

The most recent funding rounds include two Series G rounds in November 2024 and August 2024, amounting to $350 million and $340 million respectively. These rounds saw participation from various institutional, corporate, and angel investors, including Claypond Capital, General Catalyst, Narotam Sekhsaria Family Office, Sachin Tendulkar and Abhishek Bachchan. Prior to these, a Series F round in June 2024 raised $665 million, valuing the company at $3.6 billion post-money. Series E rounds in November 2023 and August 2023 brought in $31.2 million and $200 million, respectively, with valuations of $1.4 billion post-money in August 2023.

Earlier funding includes a $200 million Series D round in May 2022, which valued the company at $900 million post-money. This round reported a TTM (Trailing Twelve Months) revenue of $57.7 million, resulting in a revenue multiple of 12.1x. In December 2021, a Series C round of $100 million was raised. Series A funding of $60 million occurred in October 2021, achieving a post-money valuation of $225 million and a TTM revenue of $11.0 million, with a revenue multiple of 15.0x. The initial funding rounds consisted of a $730,000 Seed round in January 2021 and a $125,000 Seed round in November 2020.

Zepto’s revenue has shown substantial growth over the years. The company’s filings indicate a revenue of $251.7 million for FY 2022-23, a significant increase from the $18.9 million recorded in FY 2021-22 and $0 million in FY 2020-21.

10 Minutes to the Future: Why Zepto is the Blueprint for India’s Retail Revolution

Zepto has rapidly emerged as a significant player in India’s quick commerce landscape. The company specializes in delivering groceries and other essential items to customers within minutes, leveraging a network of strategically located dark stores and a sophisticated technology platform. This innovative approach has disrupted traditional retail models and catered to the increasing demand for convenience and speed in urban areas. Zepto’s success demonstrates the potential of quick commerce to revolutionize how consumers shop for their daily needs.

Inspired by Zepto’s journey and the vibrant entrepreneurial spirit it embodies? It’s time to take your own ideas off the back burner and turn them into reality. The world needs innovative solutions, and you might just be the one to deliver them. 

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