Zepto: Complete Company Overview
Zepto: Complete Company Overview
Zepto is India’s leading quick-commerce startup that has revolutionized grocery delivery by promising 10-minute deliveries. Founded in 2021 by two Stanford dropouts aged just 19, the company has grown into a $7 billion business that handles over 1.7 million daily orders across major Indian metros.
Company Basics
Founded: July 2021 (originally as KiranaKart in 2020)
Founders: Aadit Palicha (CEO, 23 years old) and Kaivalya Vohra (CTO, 22 years old)
Headquarters: Bengaluru, Karnataka (moved from Mumbai in 2024)
Current Valuation: $7 billion (October 2025)
Daily Orders: 1.6-1.8 million orders
Dark Stores: Over 250+ stores (some sources report 1,200)
Cities: 10+ major metropolitan areas
Employees: 1,000+ (though recent cost-cutting has impacted workforce)
Revenue (FY24): ₹4,454 crore (₹11,110 crore reported for FY25)
The Founding Story
Aadit Palicha and Kaivalya Vohra, childhood friends from Mumbai who grew up in Dubai, started their entrepreneurial journey at age 17 in 2020. They initially created KiranaKart, a platform connecting consumers with local kirana stores for 45-minute grocery delivery. During the COVID-19 pandemic, they joined Y Combinator’s accelerator program while attending Stanford University.
The original model of partnering with local stores didn’t gain traction, so they made a bold pivot: building their own network of “dark stores” (micro-warehouses) to enable 10-minute deliveries. After finding product-market fit with their first dark store in Bandra, Mumbai, they made the life-changing decision to drop out of Stanford in 2021—a decision that took “12 hours of convincing” for Vohra’s mother.
“We asked ourselves: What are we going to regret more? Even if this crashes and burns, the amount of learning we’ve had in the last year was insane,” Vohra explained.
The Dark Store Revolution: How Zepto Works
Zepto’s competitive advantage lies in its dark store model—strategically located mini-warehouses (2,000-3,000 sq. ft.) that are not open to walk-in customers but exclusively fulfill online orders.
Key Operational Metrics:
- Average delivery radius: 1.5-2.5 km from each dark store
- Picking and packing time: 58-90 seconds per order
- Average delivery time: 8 minutes 47 seconds (target: 10 minutes)
- Products available: 5,000+ items including groceries, fresh produce, dairy, snacks, personal care
- Operating hours: 6:00 AM to 2:00 AM daily
Technology Infrastructure:
Zepto employs sophisticated AI-powered systems for demand forecasting, inventory management, route optimization, and stock rotation. Delivery personnel use handheld devices with real-time tracking to guide them through efficient picking routes, enabling the company’s signature speed.
Funding Journey: From $730K to $3 Billion
Zepto has raised approximately $3 billion across multiple funding rounds, with two-thirds coming in just the last 18 months.
Key Investors: Y Combinator, Nexus Venture Partners, StepStone Group, Glade Brook Capital, Goodwater Capital, General Catalyst, Lightspeed, California Public Employees’ Retirement System (CalPERS), Motilal Oswal
Cash Position: Approximately $900 million in net cash as of October 2025
Business Model & Revenue Streams
Zepto generates revenue through multiple channels, though the company is still working toward consistent profitability:
1. Product Sales & Markup (Primary Revenue)
- Commission margins of 15-25% from FMCG brands and products
- Wholesale-to-retail markup on all items sold
2. Delivery Charges
3. Private Label Products
4. Zepto Pass (Subscription)
- Monthly subscription offering free/discounted deliveries, exclusive deals, and priority service
- Over 4 million subscribers as of April 2024
5. Advertising Revenue
- Brands pay for in-app promotions, featured banners, top listings, and sponsored placements
- Crossed ₹1,000 crore in annualized ad revenue in late 2024
6. Surge Pricing
Additional Ventures
Zepto Cafe: Launched in April 2022, focusing on 10-minute delivery of coffee, ready-to-eat food, and snacks. However, the venture faced significant challenges, with 4.4% of operations shutting down in 2025 due to a 50% drop in daily orders and food safety violations.
Zepto Bloom: Launched in February 2023, a platform connecting farmers directly with urban consumers for fresh produce distribution.
Market Position & Competition
India’s quick-commerce market was worth approximately ₹64,000 crore ($7 billion) in FY25 and is projected to reach $57 billion by 2030.
Market Share (2025):
| Company | Market Share | Parent Company |
|---|---|---|
| Blinkit | 45% | Zomato (Eternal) |
| Swiggy Instamart | 27% | Swiggy |
| Zepto | 21-29% | Independent |
| BigBasket Now | 7% | Tata Group |
| Others (Flipkart Minutes, Amazon Now) | 5-7% | – |
Daily Order Volume (March 2025):
- Blinkit: 1.65-1.75 million orders
- Zepto: 1.45-1.7 million orders
- Swiggy Instamart: Data not specified
Zepto has climbed from being the 7th player to the 2nd largest quick-commerce platform in India, according to CEO Aadit Palicha.
Competitive Comparison
Financial Performance
FY24 Results:
- Revenue: ₹4,454 crore (149.4% growth from FY23)
- Losses: ₹1,249 crore (narrowed from previous year)
FY25 Results (Projected):
Path to Profitability:
- Targeting EBITDA break-even in 12-15 months from August 2025
- Moving toward unit-level profitability in high-density zones
- Focus on improving operating leverage while scaling
Challenges & Controversies
1. High Cash Burn & Losses
Despite impressive revenue growth, Zepto posted losses of ₹1,249 crore in FY24. The company faces pressure to achieve profitability before its planned IPO.
2. Workforce Reductions
Approximately 1,000 employees have been impacted since early 2025, with 300 recently transferred to third-party service providers to reduce fixed costs. The company is implementing tight hiring policies and cutting AWS and software expenses.
3. Food Safety Issues
Zepto Cafe faced FDA investigations in 2025, with violations found at its Dharavi dark store, leading to facility bans and regulatory scrutiny.
4. Customer Service Complaints
Economic Times reported customer switching to competitors in 2025 due to poor customer service and execution issues.
5. Regulatory Scrutiny
The Competition Commission of India (CCI) launched an antitrust probe into predatory pricing and anti-competitive discounting practices in the quick-commerce sector.
6. Intense Competition
Blinkit (backed by profitable Zomato) has greater operating freedom and financial backing, while Zepto faces investor pressure for returns.
IPO Plans
Zepto has deferred its IPO to 2026 (originally planned for 2025). The company completed a reverse flip from Singapore to India in early 2025 and received NCLT approval to strengthen its position for public listing.
Expected IPO Details:
- Timeline: Early to mid-2026
- Expected Proceeds: ~$800 million (₹6,700 crore)
- DRHP Filing: Likely in late 2025 or early 2026
- Reason for Delay: Focus on achieving profitability and improving financial metrics before public markets
Achievements & Recognition
- LinkedIn’s #1 Top Startup in India for three consecutive years (2023-2025)
- Unicorn Status: Achieved in August 2023 at $1.4 billion valuation
- Youngest Entrepreneurs: Kaivalya Vohra (22) is the youngest on Hurun India Rich List 2025 with ₹4,480 crore net worth; Aadit Palicha (23) is second youngest
- Forbes 30 Under 30: Both founders featured
- Valuation Growth: 5x increase from $1.4B to $7B in just two years
Strategic Advantages
- Purpose-built for speed: Unlike competitors that pivoted from other models, Zepto was designed from day one for ultra-fast delivery
- Density-first expansion: Deep penetration in metros before expanding, ensuring service quality
- Strong tech backbone: AI-driven inventory, routing, and demand forecasting
- High-margin verticals: Private labels and advertising revenue diversification
- Young, agile leadership: Founders’ age enables quick decision-making and innovation
Future Outlook
Zepto is positioning itself as a dominant player in India’s exploding quick-commerce market. With strong funding, expanding infrastructure, and a clear path toward profitability, the company aims to:
- Expand to 50+ cities by 2026
- Launch separate app for Zepto Café
- Scale pharmacy segment
- Achieve unit-level and then overall profitability
- Complete successful IPO in 2026
The quick-commerce sector is expected to grow from $7 billion today to $57 billion by 2030, creating massive opportunities for Zepto and its rivals. However, the company must navigate intense competition, regulatory challenges, operational costs, and investor expectations while maintaining its signature 10-minute delivery promise.
Zepto: Complete Company Overview
Zepto’s journey from a WhatsApp group in 2020 to a $7 billion company in 2025 exemplifies the power of bold vision, rapid execution, and technology-driven innovation in India’s dynamic startup ecosystem. As the youngest founders in India’s startup landscape, Aadit Palicha and Kaivalya Vohra have redefined grocery shopping for millions of urban Indians while building one of the country’s most valuable quick-commerce platforms.
