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India's first 10-min delivery Unicorn...
Groceries delivered in 10 minutes!
About:
Zepto, a grocery delivery service company is a comparatively new company. It was founded in 2021 by Vohra and Palicha, who dropped out of their computer science in Stanford University and pursued entrepreneurship. The company has its technical headquarters in Bengaluru although all operations happen in Mumbai.
Founder, Founding Year, and HQ location:
Zepto was found by Kaivalya Vohra and Aadit Palicha in 2021 and has its headquarters in Gurugram, Haryana.
Product marketing countries:
Zepto’s services are within India in cities like Mumbai, Delhi, Bangalore, Chennai, Hyderabad, and Gurgaon.
Business Model:
It’s a D2C company catering to consumers with a delivery time for grocery within 10 minutes.
Investments:
Invested by Lachy Groom, Glade Brook, Global Founders Capital, Breyer Capital
Nexys, Contrary Capital with 60% increase in valuation from last December when it valued at $570 million, Zepto's valuation increased after the most recent round to $900 million.
Company Statistics:
Zepto’s revenue has increased by 800% in the past year with the company reporting an annual revenue growth around $200-400 million. Palicha, the founder of Zepto mentioned that the company has a monthly retention rate of 78% and a 200% monthly growth rate. The company’s valuation stands at $900 million.
Brand ambassador:
Stars like Kailash Kher, Shankar Mahadevan, and Usha Uthup have promoted Zepto in ads and at campaigns like that of IPL.
Growth:
Over the past year, Zepto's revenue increased by 800%. Last reported on May 2, 2022, the startup's annualized revenue growth was estimated at $200-400 million.
Zepto has been growing in Bengaluru, Mumbai, and Delhi-NCR. Hyderabad, Chennai, Pune, and Kolkata are expected to follow in the coming months. Bengaluru is its technical headquarters, even though its operations are located in Mumbai
Palicha claims a monthly retention rate of 78% and a 200 percent growth rate month-over-month.
Marketing strategies:
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No growth
Zepto’s marketing strategy is very unique from others. There strategy was to focus on a small bunch of cities and remove any competition there rather than focusing on overall growth and globalizing the company.
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Setting and marketing priorities
Unlike Grofers and Instamart that focus on providing discounts and cashbacks, Zepto’s focus was on speed, reliability, and efficiency. These three were their marketing USPs. It was later on that they introduced cashbacks and discounts.
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Tech-smart
Another one of Zepto’s strategy that helps it stay at the top of their game is their small-scale dark stores that have all the latest and updated technology.
Future:
As a part of their future plan, Zepto plans to use private labels to increase their profits and reduce cash burn. There are also speculations that the company may open an online medication delivery service.