Source: Wikipedia
With the fast-changing world of business, speed is the most crucial element for a company. Zepto has penetrated this mantra deeply into its functions and emerged as a high-speed player in India’s fast-commerce space. Introducing Zepto’s growth story, which is being hailed as a profound study of innovation, timing, and tenacity to become an industry leader overnight.
Let’s explore the Zepto growth story, which has become a benchmark for startups across the country.
Founders Behind the Zepto Growth Story
A major part of the Zepto growth story is its dynamic founders-Aadit Palicha and Kaivalya Vohra.
Source: The Economic Times
Aadit Palicha: The CEO
Aadit graduated with an IB Diploma through GEMS Education in Computer Science and Mathematics. After that, he attended Stanford University to study Computer Science for a bachelor’s degree; however, he dropped the program to start his company. He then graduated with Y Combinator Grade W21 and started PryvaSee as a Project Lead. He started his first company, GoPool, at 17 years old. He quit GoPool in April of 2020 and started KiranaKart and then Zepto.
Kaivalya Vohra: The CTO
With his passion for Computer Science and Mathematics, after schooling, Kaivalya also joined Stanford University to study a bachelor’s in Computer Science. But similar to Aadit, he too dropped out of his degree midway to start his business. He also joined Y Combinator along with Aadit in 2021. Kaivalya also served as the CTO of KiranaKart and now holds the same position in Zepto.
Establishing Zepto
Source: Siasat
Aadit Palicha, along with Kavivalya Vohra, founded KiranaKart when he was 17 years old. Both of them began redefining KiranaKart, and by receiving Contrary’s investment offer, they quit Stanford University to pursue KiranaKart. They initially created KiranaKart by collaborating with kirana stores local to their area, but failed to make much progress.
In the COVID-19 pandemic, both of them identified the new surge in demand for fast delivery of groceries, rather than a couple of days, in a few minutes. Therefore, there was a void left for fast delivery.
In 2021, Zepto was founded, modelled after Kiranakart, to address the pain of individuals with slow grocery delivery during the lockdown. The term ‘Zepto’ stands for the factor of 10⁻²¹, a small unit of time, signifying Zepto’s commitment to delivering out-of-this-world speed. Zepto was rapidly re-engineered as a hyperlocal and ultra-fast delivery platform for delivering necessities to customers within 10 minutes.
Zepto Growth Story: Rapid Expansion and Innovation
Source: Zee News
Zepto began owning its share of the market by being operationally efficient. It did not depend on huge warehouses and third-party logistics, unlike conventional players. Instead, it built a network of dark stores in high-density urban locations, running on real-time inventory algorithms and data analytics. This enabled Zepto to be strategically located and meet the delivery time, as well as track the inventory and dispatch.
Zepto drew numerous investors right after its formation. In the first year, Zepto raised hundreds of millions from top venture capital companies, including Glade Brook Capital, Nexus Venture Partners, and even Y Combinator. Midway through 2022, Zepto was scaled up across large metro cities. In 2022, it also introduced Zepto Cafe, offering ready-to-eat food.
Whereas its peers, such as Swiggy Instamart, Bigbasket, and Blinkit, were trying to dominate, Zepto’s relentless emphasis on delivery speed and its execution led it to own its niche space.
Zepto was a unicorn company worth $1.4 billion in August 2023, achieving a milestone. It received certification for its business model, and also indicates rapid consumer behaviour emerging in India. In 2023, Bloom was launched by the company, a platform that is dedicated to assisting farmers with food production and the movement of goods from villages to cities.
Zepto generated the revenue of 4,454 Rs. Crore in FY24 with an increase of 119.8% from 2,026 Rs. Crore revenue in FY23. It started providing premiums, subscription services, and collaboration with local merchants, evolving as a platform for daily urban convenience. The company had more than 4 million subscribers in April 2024.
Zepto has been able to build its presence in key metro cities with more than 300-400 dark stores, out of which 50-60% of these dark stores have now commenced generating cash flows. This speaks volumes about Zepto’s focus on sustainable growth and profitability for a highly competitive quick-commerce sector.
Zepto vs Blinkit vs Swiggy Instamart: Quick Commerce Battle in India
The Indian quick commerce market is heating up. Here’s a snapshot of how Zepto, Blinkit, and Swiggy Instamart stack up in 2025.
| Feature | Zepto | Blinkit | Swiggy Instamart |
|---|---|---|---|
| Founded | 2021 | 2013 (as Grofers, rebranded in 2021) | 2020 |
| Founders | Aadit Palicha & Kaivalya Vohra | Albinder Dhindsa & Saurabh Kumar | Part of Swiggy (Sriharsha Majety, etc.) |
| Delivery Time | 10 minutes (avg.) | 10-15 minutes | 15-30 minutes |
| Cities Covered (2025) | 20+ major cities | 25+ cities | 30+ cities |
| Funding Raised | ~$1.9 Billion (till 2024) | ~$1 Billion+ | Backed by Swiggy (raised $1.25B in 2022) |
| Business Model | Dark stores, high-density zones | Dark stores, owned and partner model | Warehouses and retail partnerships |
| Unique Offering | Zepto Cafe (ready-to-eat meals) | Blinkit Bazaar (local stores) | Subscription & convenience bundles |
| Latest Valuation (2024) | $5 Billion | ~$1.4 Billion | Swiggy’s valuation ~$10 Billion (2023) |
| Profitability Status | 50–60% stores generating cash flow | Still burning cash | Gradual shift toward profitability |
| Tech Edge | Real-time inventory, AI risk tools | Hyperlocal mapping, route optimization | Swiggy Genie integration |
| Marketing Highlight | IPL ads, ‘Nahi Milega’ campaign | Creative ads on social media | Integrated within Swiggy app ecosystem |
Challenges
Most of the critics were voicing concerns about sustainability, for instance, rider safety, conditions of labour, costs of operations, etc. So, Zepto transitioned to smart optimisation, where it retains hyper-speed while ensuring optimised resources and further ramped up investments in rider safety measures, welfare of riders, and AI-powered tools for risk minimisation.
Zepto is of low profit margin, as a result of promotions such as heavy cashback and zero-cost delivery of orders that amount to ₹199. Nevertheless, it still offers promotions to reach wider audiences for the company and lower its costs by embracing sustainability measures.
Raising Funds
- Zepto raised $730,000 from Global Founders Capital, Contrary Capital, 2 AM Ventures, and angel investors in January 2021 in a pre-seed funding round.
- In October 2021, the firm raised about $60 million from Nexus, Y Combinator, Global Founders Capital, and angel investors at a valuation of $225 million.
- In December 2021, the firm raised $100 million from Y Combinator’s Continuity Fund in Series C, worth $570 million.
- Following this, Zepto once again raised $200 million in Series D in May 2022, headed by Y Combinator’s Continuity Fund, at a $900 million valuation.
- Zepto raised $200 million in Series E from U.S.-based investment funds in August 2023 and became a unicorn company valued at $1.4 billion.
- In June 2024, approximately $665 million was raised in Series F at a valuation of $3.6 billion, and $340 million in funding was raised at a valuation of $5 billion two months later.
- In November 2024, the Series G round Zepto raised more than $350 million from Motilal Oswal Private Wealth and others.
Shareholding
Nexus Venture Partners has the largest holding in Zepto with 18.6%. Though Y Combinator, Glade Brook Capital, StepStone Group, etc., are major shareholders of Zepto. Aadit Palicha has 0.9% and Kaivalya Vohra has 0.7% shareholding in Zepto.
Marketing Campaigns
One of the major drivers of the lightning-fast growth of Zepto is its marketing. L&K Saatchi & Saatchi is the driving force in propagating Zepto’s products and services. Its advertisement in IPL 2022, featuring renowned singers Kailash Kher, Shankar Mahadevan, and Usha Uthup, boosted Zepto’s popularity and brand recognition. Its other campaign, ‘Nahi Milega’, introduced in 2023, promoting Zepto’s free deliveries without limits, created a perception of Zepto as the first choice in grocery delivery. Thus, innovative and effective marketing campaigns have established Zepto as a top player in the quick-commerce sector.
Future Plan
Source: Pocketful
Zepto is strongly committed to profitability, growth, and technological advancement. Focusing on Tier 1 and chosen Tier 2 towns, it is working on the adoption of sustainable measures and automation to grow responsibly. The company is also estimating $5.5 billion of gross sales in the fourth quarter of FY26, along with positive EBITDA.
Zepto is also slated to go public in 2025 as Zepto Marketplace Private Limited. Goldman Sachs, Morgan Stanley, and Axis Capital have been appointed as advisers for the IPO. Zepto Cafe is growing very fast, opening more than 100 outlets every month and aiming at achieving an INR 1,000 crore revenue run rate by FY26.
Conclusion: Why Zepto Growth Story Inspires a Generation
Zepto demonstrates its adaptability, customer-oriented, and intelligent implementations on its innovation path from startup to speedster. It has also shown that, when it comes to delivery, seconds are of the essence. As India keeps on digitalising and urbanising at a pace unmatched anywhere else in the world, Zepto’s experiment is an example of the potential when vision is coupled with velocity. It’s a formula for delivering innovation when given pressure. With a keen emphasis on speed, convenience, and customer experience, Zepto has become a disruptor in India’s quick commerce business with immense potential for long-term development.
