Zepto delivers groceries in just 10 minutes or less using a smart “Dark Store” model. Founded by Aadit Palicha and Kaivalya Vohra, it quickly grew from a small startup to a major player in grocery delivery.
A Risky Decision
In 2020, Aadit Palicha and Kaivalya Vohra made a big decision: they left Stanford University to start a business. Sounds crazy? Not to them! The world was locked down due to the pandemic, and getting groceries was a major hassle. This problem inspired them to create Kiranacart, which has now turned into Zepto, a company that delivers groceries to your door in just 10 minutes or maybe earlier than that.
How Zepto Works
Aadit and Kaivalya first tried to deliver groceries with a company called KiranaKart using a WhatsApp group, but it didn’t work out. They quickly realized they needed a new plan, leading to the creation of Zepto. Their big idea was to deliver groceries super fast—within 10 minutes.
They achieved this with something called the “Dark Store” model. Here’s how it works:
- You place an order on the Zepto app.
- The nearest dark store gets your order right away.
- In less than 60 seconds, staff pick and pack your items.
- A delivery person brings your groceries to your door in 10 minutes.
Dark stores are like small, hidden warehouses that help speed up the process. They’re not open to the public; they only exist to handle online orders quickly.
Aadit Palicha said, “We’re still working hard and solving problems, but we believe if we keep going, Zepto will become a huge success.”
Amazing Growth and Challenges
Zepto’s success has been incredible. In just one year, their revenue jumped from Rs 142 crore in FY22 to Rs 2,024 crore in FY23, projected to close at Rs 5000 crore in FY 2024. That’s a huge increase! However, the company faced challenges too. Their losses grew from Rs 390 crore to Rs 1,272 crore. Despite this, Zepto improved its profit margin and expects to break even soon.
Today, Zepto delivers over 6,000 products in seven major cities across India. Aadit and Kaivalya, along with their families, own more than 22% of the company, showing their strong commitment to its future.
Expanding into New Areas
The brand isn’t stopping with just groceries. They recently launched Relish by Zepto, a new meat brand. In less than six months, Relish has already earned Rs 150 crore in revenue and is expected to become a Rs 1,000 crore business within the next 18–24 months.
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