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The digital demand for smart applications is exploding like never earlier. To satisfy our daily food needs, we all buy groceries. You only need an app on your Android phone to have all of your grocery orders delivered to your sofa, eliminating the need to go to the store for your daily requirements. With only a few touches on your mobile device, you can acquire your groceries.
Companies are working to reduce the time it takes to deliver groceries in the groceries delivery business. Weezy, Gorillas, Jokr, Swiggy Instamart, Grofers, and other companies from all over the world are competing with the primary goal of reducing delivery time and transporting supplies in 10-15 minutes.
Zepto is a grocery delivery app that delivers groceries to your home promptly. Customers may purchase items in a quick and hassle-free manner at the company's store, which includes a broad choice of daily essentials.
Know more about Zepto's company profile, business model, startup story, funding, etc. in this article.
Zepto - Company Highlights
| Startup Name | Zepto |
|---|---|
| Legal Name | KiranaKart Technologies Private Limited |
| Headquarters | Parel, Maharashtra, India |
| Industry | Delivery, Delivery Service, and Grocery |
| Founders | Aadit Palicha, and Kaivalya Vohra |
| Founded | 2021 |
| Areas Served | India |
| Current CEO | Aadit Palicha |
| Website | www.zeptonow.com |
About Zepto
Zepto - Latest News
Zepto - Industry
Zepto - Name, Logo, and Tagline
Zepto - Founders
Zepto - Startup Story
Zepto - Vision, and Mission Statement
Zepto - Business Model, and Revenue Model
Zepto - Funding, and Investors
Zepto - Growth
Zepto - Competitors
Zepto - Future Plans
About Zepto
Zepto, a startup based in Mumbai, offers a 10-minute groceries delivery service. Aadit Palicha and Kaivalya Vohra launched Zepto, a company known to deliver groceries in 10 minutes.
It worked with 86 dark store owners in thirteen different areas in 2021, generating over one million deliveries. To fulfil orders promptly, Zepto employs its network of 'cloud shops' or micro-warehouses.
Zepto's secret is its capacity to routinely produce 2,500+ goods in under ten minutes. It's at the heart of everything the firm does, and it's why they've been able to develop so quickly while maintaining incredible client loyalty.
With the aid of the dark store idea, Zepto has slashed the time it takes to deliver groceries to only 10 minutes. According to reports, rapid commerce is the next major thing the supermarket delivery sector is hoping to capitalize on. Startups like Zepto in India and Fridge No More in New York City are among the fastest-growing companies in the faster-delivery business.
Zepto - Latest News
Zepto, a rapid grocery delivery business created by two teens, has secured $100 million in a fundraising round headed by Y Combinator, bringing its valuation to $570 million just 5 months after launching services in India's brisk quick commerce sector.
The startup's current funding comes forty-five days after a preceding capital round of Rs 450 crore at a value of Rs 1,700 crore, according to Aadit Palicha, co-founder and CEO. Glade Brook Capital Partners, Breyer Capital, Nexus Venture Partners, and Silicon Valley investor Lachy Groom, in addition to Y Combinator's Continuity Fund, invested in the latest round, according to the company.
Zepto - Industry
E-grocery delivery is gathering traction in India with a $1 trillion retail market where grocery purchases make up the vast majority of consumer spending. The Indian e - grocery market was valued at $2.9 billion in 2020, and it is expected to grow at a 37.1% rate from 2021 to 2028.
The sector has expanded in prevalence in the past months as a result of evolving customer habits, growing urbanisation, and a tech-savvy generation who prefers to make online purchases.
As their standard of living increase and their daily schedules get tighter, consumers are flocking to customised and convenient internet platforms for grocery shopping instead of walking down to the local shops.
Following the COVID-19 pandemic, the popularity of online grocery delivery became increasingly evident. As a consequence of social distancing constraints, consumers are converting to online grocery shopping, which is not only convenient but also safer.
Chayanika Goswami
Zepto - Name, Logo, and Tagline
The firm, which uses the term "Zepto" to denote "a factor of 10⁻²¹, i.e. 0.000000000000000000001," named after a minuscule unit of time, offers a 10-minute grocery delivery service, surpassing numerous well-funded competitors.
Zepto's tagline says, "Groceries delivered in 10 minutes."
Zepto - Founders
Aadit Palicha and Kaivalya Vohra, both 19-year-old childhood pals, created Zepto after walking out of Stanford University's renowned computer science department to return to their home, India and start up a business. The firm was founded in September of last year and began operations in April of this year.
Aadit Palicha
Aadit Palicha is the CEO and Co-Founder of both KiranaKart and Zepto.
Kaivalya Vohra
Kaivalya Vohra is the Co-Founder and CTO of KiranaKart and the Co-Founder and CTO of Zepto.
Rishabh Rathi
Zepto - Startup Story
Many of us have "startup ideas," but even the most creative among us struggle to see them through. Palicha and Vohra had both enrolled at Stanford to earn a Computer Science degree but had dropped out to follow their business passions instead.
During the Covid-19 outbreak, the concept for Zepto sprang from the limitations of their houses. A surge in demand for delivery services meant that groceries and other necessities would arrive in a couple of days, creating a void for quick delivery. As a result, Zepto was created with all this insight.
These teenagers were abruptly detained, because of Covid norms, inside their Mumbai homes after significant collaboration on many projects, including a ride-hailing commuting app for kids. Even while grocery delivery, which was deemed important by local authorities, was still permitted across much of the nation as the virus spread, the duo battled to get their provisions as the illness expanded.
While Zepto is the focus of attention, Palicha and Vohra's first venture, KiranaKart, did not receive the same acclaim. Zepto, on the other hand, is inspired by KiranaKart. KiranaKart, like its name implies, was a supermarket delivery service. It had made arrangements with Kirana merchants to provide groceries in 45 minutes or less. A $730,000 pre-seed round was led by Global Founders Capital, 2 AM Ventures, Contrary Capital, and angel investors. At the time, Vohra and Palicha planned to make the first 1.5 lakh deliveries at a cost of Rs 1.
Zepto - Vision, and Mission Statement
As two bachelors living alone, the founders found it most difficult to obtain food, therefore they focused their applications on grocery delivery. So, whereas KiranaKart, their first startup, tried to make grocery delivery easier for kiranas, Zepto aims to shorten delivery times.
Zepto - Business Model, and Revenue Model
Zepto delivers groceries in ten minutes through a system of dark storefronts and mini-warehouses, on up to 90 percent of orders. To ensure a flawless delivery experience, Aadit says that their average delivery time is 8 minutes and 47 seconds. Through a chain of dark stores or retail distribution centres, the Mumbai-based company employs a hotspot method to cater largely to digital purchases.
A dark store is a tiny neighbourhood storehouse where customers cannot visit and must purchase online for package delivery. While dark stores are not new to the Indian industry, Aadit believes that the idea has yet to be completely explored. Population, traffic dynamics, topography, road patterns, weather conditions, last-mile operational improvement, real estate prices, and other geographic data and local intelligence are aids Zepto in optimising its connectivity. Furthermore, the startup's dark warehouses and cool rooms are custom-designed to satisfy particular criteria such as ease of travel, allowing packers to move as swiftly as possible to fill orders.
Location intelligence and geographic data, such as topography, population, road patterns, traffic dynamics, weather, last-mile supply availability, real estate values, and so on, are said to help Zepto optimize its network.
Rishabh Rathi
Zepto - Funding, and Investors
| Date | Round | Amount | Lead investors |
|---|---|---|---|
| Dec 20, 2021 | Series C | $100 million | Y Combinator Continuity Fund |
| Oct 31, 2021 | Series A | ₹4.4 billion | Glade Brook Capital Partners |
| Sep 1, 2020 | Pre Seed Round | - | Contrary |
Zepto - Growth
Zepto is growing in Bengaluru, Mumbai, and Delhi-NCR, with Hyderabad, Chennai, Pune, and Kolkata to follow in the coming months. Its technical office is in Bengaluru, while its operations are in Mumbai. Dream11, Flipkart, Pharmeasy, Uber and Pepperfry have all hired key executives for Zepto.
Engineering, operations, marketing, and financial positions are also available at Zepto. Palicha claims that month-over-month growth is 200 percent, with a monthly retention rate of 78 per cent.
“We are looking at a pretty crazy runrate,” he said. “In the past one and a half months, we have grown our business by 10 times. And now we are working to grow another 10 times by February or March,” said Palicha.
Zepto, a five-month-old startup, has secured $100 million in a Series C round headed by Y Combinator's Continuity Fund at a valuation of $570 million, a 2X increase from its previous valuation of $60 million only 45 days ago. Lachy Groom, Glade Brook, Global Founders Capital, Breyer Capital, Nexus, and Contrary Capital were among the new and old investors who participated in the round.
Another positive development for Zepto has been the expertise it has been able to acquire in previous months. Plenty of well-known senior executives from Uber, Flipkart, Dream11, Amazon, and Pharmeasy have joined the team.
According to Palicha, one of the reasons why several entrepreneurs have chosen Zepto is that it has enabled individuals who had transferred from Mumbai to Bangalore to come back to their homes. He says, nevertheless, that the startup's rapid development, rigorous execution, and ambitions have captivated others who share his interests. "We've been able to walk the walk," he said.
“They originally launched with a different model, swiftly pivoted to quick commerce in August 2021 and are now adding 100,000 new customers every week, 60% of them women. Their attention to detail on the logistics experience is unparalleled and this has enabled them to scale to most major metros in just 5 months. Simply put, we’re confident Zepto will win in this space over the long-term," said Palicha.
Varad Kitey
Zepto - Competitors
Swiggy Instamart, Big Basket which offers delivery in 15-30 minutes, and Grofers, which wants to begin 10-minute grocery deliveries in 10 cities, compete with Zepto. It also competes with Dunzo, which uses its Xpress Mart dark shop network to deliver groceries in Bengaluru in 19 minutes.
Zepto - Future Plans
The cash will be used by the Mumbai-based firm to increase the number of dark stores in additional locations, grow its client base, and hire more workforce. It is now available in Bengaluru and the Delhi-National Capital Region, with Hyderabad, Chennai, Pune, and Kolkata to follow in the following 30 days.
By the end of the year, it hopes to have 100 dark businesses open, serving roughly 100 pin codes. Quick commerce is predicted to reach $300 million by the end of this year, according to a research group, and will expand to $5 billion by 2025.
The Co-founder Palicha explained that no one has completely mastered marketing in India. He further said that when you examine a few older organisations that are attempting to implement this approach, you'll notice that many of them are unfocused and lack the consistency to operate on a single model. They get involved in several different things, which is the greatest issue in every major firm.
“We have seen our median delivery times stabilise if not decrease, mainly because as we scale our coverage and our expansion, it ends up being a factor of individual cloud stores and how they perform,” he said.
Express delivery is not a novel notion; most existing e-grocers have attempted it previously, with mixed results. Following the Covid-19 pandemic's faster uptake of online groceries, these platforms have been bringing back speedy delivery to consumers, primarily under the dark-store model.
Zepto - FAQs
What does Zepto do?
Zepto, a startup based in Mumbai, offers a 10-minute groceries delivery service.
Who founded Zepto?
Zepto was founded by Aadit Palicha and Kaivalya Vohra, two childhood friends.
When was Zepto founded?
The firm was founded in September 2020 and began operations in April 2021.
Which companies do Zepto compete with?
Swiggy Instamart and Big Basket, which deliver in fifteen-thirty minutes, compete with Zepto, as does Blinkit, which aims to provide 10-minute food deliveries in ten cities in India. It also competes with Dunzo, which uses its Xpress Mart dark shop network to deliver groceries in Bengaluru in 19 minutes.
Source :- https://startuptalky.com/ Author :- Sarika Anand Date :-March 17, 2022 at 01:39PM