India is home to several startups, and there are lots of ideas for startups in abundance, but being a successful startup to become a unicorn is a tough journey that requires both hard work and smart work. Apart from that, successful execution is the key to success. Zepto stands out as a remarkable example of successful entrepreneurial zeal. Founded by two 19-year-old Stanford dropouts, Aadit Palicha and Kaivalya Vohra, Zepto has disrupted the grocery delivery landscape with its lightning-fast service and impressive growth.
The Genesis of Zepto
Aadit and Kaivalya’s remarkable journey starts with KiranaKart, their first startup, which unfortunately had to be shuttered due to market-fit challenges. Undeterred, Zepto is their second entrepreneurial endeavour. Due to the COVID-19 pandemic, a sudden surge in demand for home deliveries highlighted a critical gap. While groceries and essentials reached consumers within days, there was a large gap in instant grocery delivery mechanisms. Zepto was born from this realisation.
The Zepto Experience
Zepto’s unique selling point is the idea of 10-minute grocery delivery. Yes, you read that right—10 minutes! Have we ever thought of ordering your favourite snacks, fresh produce, and household essentials and having them arrive at your doorstep in the time it takes to brew a cup of coffee? This rapid delivery experience has been very liked by the customers, which is reflected in their Net Promoter Score (NPS), which consistently hovers around 85. Notably, the week-on-week user retention rate exceeds 50%—a testament to the strong customer love for Zepto.
Funding and valuation
Zepto’s remarkable investment rounds highlight the company’s explosive growth. In a recent fundraising round led by Glade Brook, Nexus, Lachy Groom, Y Combinator, and Global Founders Capital, Zepto raised an astounding $60 million. What could be more astounding? The company was established in April 2023! Zepto is currently valued between $200 and $300 million.
Zepto vs. the Giants
Zepto was a newly started startup, and its idea is unique. However, there is also tough competition in grocery delivery service as there are already big players doing the same and competing for the same segment as grocery delivery. For example, Grofers guarantees a 10-minute delivery time, and Swiggy’s InstaMart offers a 15-minute delivery window for groceries, necessities, and self-care items. To stay ahead, Zepto’s strategic idea of establishing micro-cloud-based warehouses, which are small compared to other players with large warehouses, With operations in parts of Mumbai, Delhi, Bengaluru, Gurugram, and Chennai, Zepto has ambitious plans to expand to Hyderabad, Kolkata, and Pune. Their app has already been downloaded over 100,000 times on the Google Play Store, offering thousands of items for delivery from 7 a.m. to 1 a.m.
Aadit Palicha: From Dropout to CEO
Aadit Palicha, Zepto’s co-founder and CEO, epitomises the spirit of young entrepreneurs. Within a year, Zepto achieved a valuation of Rs 7,400 crore ($900 million), and today, it soars to an astounding worth of over Rs 11,600 crore ($1.4 billion). Their efforts are paying off, with consistent 200% monthly growth and access to institutional capital. Zepto’s operational strategies, including the network of dark stores, have contributed to its success.
Kaivalya Vohra: India’s Richest Youngster
Kaivalya Vohra came to light after unicorn status was achieved by Zepto, making him the richest youngster in India with a net worth valued at Rs 1,000 crore. Zepto’s journey from inception to unicorn status in a mere two years is an incredible achievement. Kudos to their vision and execution.
In a nutshell
Zepto’s story is one of audacity, resilience, and innovation. Aadit and Kaivalya’s aim to transform grocery delivery in 10 minutes has not only disrupted the market but also inspired a generation of young entrepreneurs to believe that with clear aims, proper strategic planning, and perseverance toward a certain goal, anything can be achievable. As Zepto continues to redefine convenience, it reminds us that age is no barrier to creating something extraordinary.
In the words of Zepto’s founders, “Today, we’re constantly growing, with an unstoppable team, robust product infrastructure, and deep access to institutional capital.”