They observed that people who were ordering grocery not happy with their late timings and stopped using an application for the next time, so they were losing their customers.
So they decided to change their application and started a new one named ‘Zepto’. Two teenagers have raised 100$ million into 570$ within five months.
Founder
Aadit Palicha and Kaivalya Vohra pursued a computer science course at Stanford University. Due to the Pandemic situation, they returned to India and started a startup, ‘Kirana kart’.
In a pandemic situation, people were helpless to receive their groceries on time. So they decided to start delivery from grocery stores to home.
How did it start?
Two students who are only 19-years old started their startup at pandemic times named ‘Kirana kart‘, but customers were receiving late delivery about 45 minutes. Due to its late timings, they were losing their customers.
So they decided to start a new one with the name ‘Zepto‘. During pandemic times, people were helpless to get their necessary things, especially groceries.
Then they began Kirana kart, but due to its timings issues, it stopped and started a new application called Zepto. In Zepto, they emphasized that customers have to receive their delivery in less than 10 minutes.
They raised USD 60 million (around ₹449 crore) in early-stage funding from investors like Glade Brook, Nexus, Lachy Groom, Y Combinator, and Global Founders Capital.
Zepto management team consists of senior leaders from Flipkart, Uber, Dream11, Pharmeasy, Pepperfry, etc. Y Combinator was the first investor of Zepto.
Zepto Business Model
When they set up Kirana kart, they were defeated on the timing part of delivery. So they stopped that business and started working on their next model. For improving their delivery timings part, they made ‘dark stores‘ in particular areas.
Dark stores are like warehouses where they keep their respected stores. In these stores, they keep their stock according to customers’ demands.
When customers select items on an application, that list comes to the warehouse application, and according to the list, they packed delivery items.
The delivery boy took delivery to the respected place within 60 seconds. So the customer gets their delivery within 10 minutes.
Zepto Expansion
Zepto’s Tech operational office is in Mumbai, and the tech office is in Banglore. Recently, 300 employees have been working in this company. After Mumbai, they explored Banglore and Delhi.
In the future will establish in Pune, Kolkata, Hyderabad, etc. Zepto is valued at $300 million. During these few months, startups competed with big companies like Swiggy, BigBasket, Grofers, etc.
Zepto is also going to start delivery from 7 am to 1 am. We can find thousands of items on the application. Now the company has more than 100 dark stores and warehouses.
Zepto’s application can find more than 2,500 items like fresh produce, cooking essentials, snacks, beverages, personal care, and house cleaning.
Conclusion
The business built by Aadit and Kaivalya is not beneficial from a business point of view, but also it helps those who are not able or don’t have time to go to grocery stores.
This type of business idea will never fail in the future. This idea is not new, but it will not stop because it is associated with the needs of every kitchen.
Read More : Dunzo Success Story – OnDemand Delivery Service Startup
