zepto case study ppt

Zepto Business Model

Dec 21, 2022

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Discover how the Zepto business model works and why it is the fastest-growing grocery delivery app. Find out how zepto has evolved, what the company is planning to do in the future, and who its competitors are. <br>

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Zepto A brief Introduction about the company Kaivalya Vohra and AaditPalicha, Stanford University dropouts, founded Zepto in April 2021. The zepto business concept is based on fast-growing rapid commerce. Zepto become a faster-growing grocery delivery platform in India. The company's promises of less than 10 minutes of delivery to customers’ doorsteps have proven to be a game changer. Zepto has raised more than $200 million in a new financing round to expand its network of dark stores. More than 100 places are known as micro fulfillment centers or dark stores that lie in the higher-demand area. This store used modern technology to perform different activities such as product positioning. They also decide on the company finalizing the store’s location, and mapping delivery routes to avoid heavy traffic congestion. The company delivers almost 2500 items, including fresh produce, cooking necessities, personal care items, home cleaning items, and snacks and beverages. Founder AaditPalicha Kaivalya Vohra

Zepto The Dark Store Model Concept Traditional retail stores or supermarkets that have been turned into eCommerce warehouses or distribution hubs are known as dark stores. The dark store might appear ominous. They undercut clever strategies that kept some retail establishments afloat during COVID-19. Customers benefit from a dark store online order and purchase system, same-day delivery, in-store pickup, and online shopping. The dark store concept has helped the zepto to decrease the time to deliver goods to 10 minutes. With dark stores, zepto business model become the fastest growing sector in the delivery sector.

Zepto Delivery Types Home Delivery Home delivery refers to quick, convenient, and contactless delivery of items such as groceries and other necessary products at the customer's doorstep within 10 minutes. In-Store Pickup A customer will be able to pick up the items from the store without having able to stroll through the entire store. Customers can appreciate this option because it eliminates delivery costs. Curbside Pickup Curbside pickup often consists of a parking space design while retail staff will carry out the item without the customer having to leave the vehicle. It's will help customers to the greatest extent possible in an event like a pandemic.

Zepto How Zepto Works? Browse and Place an Order Customers download the app & register into the app. They browse or filter product items and place an order they want. Packaging and Dispatch The dark store receives orders, checks the stock, and fulfills packing and delivery requirements. Order Receive A delivery person collects orders & provided them to the customer's doorstep. The customer provided feedback about their experience.

Zepto Advantages of Zepto Business Model Faster Delivery The dark store business model helps Zepto to fulfill multiple orders swiftly. Cold and micro warehouses offer different distribution options, physically delivering groceries closer to a market group. Boost Customer Reach The cloud kitchen makes distribution hubs accessible to consumers; they accept round-the-clock services online. Consumers are drawn to these grocery delivery platforms and employ the services as a result. Contactless Shopping Dark stores offer the convenience of online contact-free shopping with the benefits of instant delivery of your product. Dark stores enable consumers to shop for meals and groceries without interacting with others or moving to physical stores. Improved Product Assortment & Inventory Dark stores provide excellent inventory control, handle great order quantities, and have no consumers. Zepto’s AI-powered platform enables inventory stock tracking and product assortment.

Zepto Zepto Future Plans The company looking to expand its client base, open dark stores, and hire more staff to ensure smoother services for the customer. The company is planning to cover about 100 pin codes. India’s quick commerce market is expected to reach around $5 billion by 2025. They are looking to offer their service in other countries in the future. Also, a company looking forward to launching pharmacy delivery services online. The founder also concluded, “we have noticed median delivery times stabilize if not lower because we scale our expansion and coverage; it ends up being an aspect of single cloud stores and how they perform.” Zepto offers express delivery services which became a back through for the success. The delivery platform brings quick delivery to customers through the dark-store concept.

Zepto Competitors Blinkit • The user interface is relatively easy to operate • Instant, a real-time updates can be accessed • No minimum order value Big Basket • Purchase farm products, and then manage the stock of all these items in its warehouse • Big basket purchase product from some of the best and largest brands. Instamart • The average basket size for grocery top-up business is close to Rs.400-450 • The 3i frameworks: Intent, Indulgence, Inspiration • Driving inspiration

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Zepto Marketing Strategy 2024: A Case Study

Welcome to our in-depth case study on Zepto’s marketing strategy for 2024. Zepto is a leading grocery shopping app that has revolutionized the quick commerce industry with its promise of delivering groceries in just 10 minutes. In this article, we will delve into Zepto’s digital marketing tactics, online advertising campaigns, and overall marketing plan that have contributed to its remarkable success. We will also explore how Zepto has optimized its SEO, leveraged social media marketing , developed a robust content strategy, conducted market analysis, and efficiently managed campaign management. Join us as we uncover the secrets behind Zepto’s marketing triumphs.

Key Takeaways:

Zepto is a grocery shopping app that promises 10-minute delivery.
Zepto’s marketing strategy encompasses digital marketing , online advertising, and SEO optimization.
The company has utilized social media marketing and content strategy to enhance brand visibility.
Market analysis and campaign management have played a crucial role in Zepto’s success.
Zepto’s innovative approach to quick commerce has disrupted the online grocery delivery market.

Zepto’s Shareholdings and Funding

Zepto, the rapidly growing grocery delivery app, has garnered substantial support from prominent investors and successfully raised significant funding to fuel its expansion. Led by founders Kaivalya Vohra and Aadit Palicha, Zepto has positioned itself as a formidable player in the quick commerce industry.

Zepto’s major shareholders include the co-founders, Kaivalya Vohra and Aadit Palicha, who have been instrumental in driving the company’s success. Additionally, Nexus Ventures, a prominent venture capital firm, has invested in Zepto, demonstrating their confidence in the company’s potential.

In its recent Series D funding round, Zepto secured an impressive $200 million investment. Y Combinator Continuity, a renowned seed-stage venture firm, led the round, showcasing their belief in Zepto’s unique value proposition and growth prospects.

Zepto intends to allocate the funding strategically to facilitate its expansion plans. The company aims to further enhance its operations, improve the quality of its goods and services, and develop new offerings to cater to diverse customer preferences.

One of the exciting developments on Zepto’s roadmap is the introduction of Zepto Cafe, a new service that will present customers with a range of delicious beverages. Collaborations with popular establishments such as Blue Tokai Coffee and Chaayos will enhance Zepto’s beverage offerings and increase customer satisfaction.

The funding raised by Zepto will also be utilized to strengthen its partnerships and streamline its delivery capabilities. This strategic approach will help the company continue its rapid growth trajectory and maintain its competitive edge in the market.

Funding Utilization Breakdown

Zepto has outlined a comprehensive plan for funding utilization. The majority of the funding, 40%, will be allocated towards driving growth and expanding its market presence. This will involve entering new cities and regions to reach a larger customer base.

30% of the funding will be directed towards product development initiatives. Zepto aims to enhance the quality and variety of its goods and services, ensuring that customers have access to a seamless and delightful shopping experience .

Recognizing the importance of strong partnerships, Zepto plans to allocate 20% of the funding towards collaborations with established brands and businesses. Strengthening these alliances will provide Zepto customers with an even wider array of choices and improve overall customer satisfaction.

The remaining 10% of the funding will be utilized to enhance Zepto’s operations. This includes optimizing delivery logistics, improving inventory management, and investing in cutting-edge technologies to maximize efficiency.

With a clear roadmap for funding utilization, Zepto is poised to leverage its investor backing to propel its growth and continue transforming the grocery delivery landscape.

Zepto’s 10 Minute Delivery Strategy

Zepto, the leading grocery shopping app, differentiates itself in the market by offering a groundbreaking 10-minute delivery service. With its commitment to speed and convenience, Zepto has revolutionized the way people shop for groceries.

The key to Zepto’s rapid delivery lies in its innovative “dark shop model.” This approach involves strategically located mini-warehouses called dark stores that are strategically positioned within a 3-kilometer radius of customers. By housing the inventory closer to the consumers, Zepto reduces delivery time significantly.

By utilizing cutting-edge technology, Zepto ensures efficient order fulfillment and delivery optimization. The company employs the AI-powered application called Locus to track customer data and analyze delivery routes. This helps Zepto streamline its operations and make real-time adjustments for optimal efficiency and accuracy.

Moreover, Zepto follows a precise Picking, Packing, and Bagging (PPB) formula to maintain high productivity and ensure quick order processing. Through meticulous execution of the PPB formula, Zepto minimizes errors and maximizes efficiency in their order fulfillment process, allowing them to meet their 10-minute delivery promise.

With its 10-minute delivery strategy, dark shop model, Locus AI application, and PPB formula, Zepto has set a new standard in the grocery delivery industry. Customers can now enjoy the convenience of ultra-fast delivery right to their doorstep, making grocery shopping easier and more efficient than ever before.

Zepto’s Dark Store Business Model

Zepto’s dark store business model is the key to its efficient operations and quick deliveries. The company utilizes mini-warehouses, which are not accessible to the public, to handle customer orders. These mini-warehouses, also known as dark stores, are strategically located to ensure proximity to customers and enable fast fulfillment.

By using mini-warehouses, Zepto can stock a wide range of products and maintain inventory levels required to meet customer demand. This enables the company to offer customers the convenience of online buying, same-day delivery, and in-store pickup options.

Quick Deliveries and In-Store Pickup

Zepto’s dark store business model allows for quick deliveries to customers’ doorsteps. The strategic placement of mini-warehouses ensures that customers within a certain radius can receive their orders in just ten minutes. This lightning-fast delivery time sets Zepto apart from its competitors and provides a significant competitive advantage.

In addition to quick deliveries, Zepto also offers customers the option of in-store pickup. This allows customers to place their order online and collect it from the nearest Zepto dark store at their convenience.

Efficient Order Fulfillment Through AI-powered Tools

Zepto’s dark store business model relies on AI-powered tools to ensure smooth order fulfillment. These tools streamline the picking, packing, and delivering processes, allowing for greater efficiency and accuracy.

The AI application, Locus, plays a crucial role in tracking customer data and optimizing delivery routes. By analyzing real-time data, Locus helps Zepto identify the most efficient routes for delivery, reducing delivery time and ensuring that orders reach customers on time.

Overall, Zepto’s dark store business model, with its mini-warehouses and AI-powered tools, enables the company to provide quick deliveries, in-store pickup options, and efficient order fulfillment. This model has been instrumental in Zepto’s success as a leading player in the quick commerce industry.

Zepto’s Marketing Mix

Zepto, the innovative grocery delivery app, utilizes a strategic marketing mix to attract and retain customers in the competitive quick commerce industry. The company focuses on various elements such as product, price, place, and promotion, to create a compelling offering for its target audience.

Zepto understands the importance of providing a diverse range of high-quality products to meet the needs of its customers. The app offers a wide selection of groceries, fresh produce, household items, and personal care products. By offering a comprehensive range of products, Zepto ensures that customers can find everything they need in one convenient place.

Zepto adopts a strategic pricing approach to attract customers and remain competitive in the market. The company offers competitive pricing for its products to provide value to customers while also maintaining profitability. Zepto’s strategic pricing strategy ensures that customers feel they are getting a fair deal while still enabling the company to generate revenue.

Zepeto primarily operates through its user-friendly mobile app, which allows customers to conveniently browse and order products from the comfort of their own homes. Zepto also partners with a network of reliable and efficient delivery services to ensure that orders are fulfilled promptly and accurately. Through its strategic partnerships, Zepto ensures that customers can receive their groceries in a timely manner, further enhancing the convenience of its service.

To enhance brand visibility and reach a wider audience, Zepto utilizes various marketing channels , including social media, influencer marketing, and out-of-home advertising. The company leverages social media platforms to engage with customers, share relevant content, and run targeted advertising campaigns. Zepto also collaborates with influencers to create authentic and relatable content that resonates with its target audience. Additionally, out-of-home advertising, such as billboards and posters, helps increase brand awareness and reach potential customers outside of digital spaces.

In summary, Zepto’s marketing mix combines a diverse range of high-quality products, competitive pricing, convenient ordering through the mobile app, and strategic promotional efforts to create a compelling and successful grocery delivery service. By focusing on these elements, Zepto positions itself as a leader in the quick commerce industry and continues to attract and retain customers in a highly competitive market.

Zepto’s Marketing Strategy

Zepto’s marketing strategy revolves around leveraging its unique 10-minute delivery service, creating impactful advertising and branding campaigns, harnessing the power of social media meme marketing, and implementing effective customer acquisition and retention strategies, including referral programs. By employing these diverse tactics, Zepto aims to attract customers, build brand awareness and loyalty, and stay ahead of its competitors in the online grocery delivery market.

10-Minute Delivery Strategy

One of the key elements of Zepto’s marketing strategy is its focus on the 10-minute delivery service. By offering lightning-fast grocery deliveries, the company sets itself apart from traditional grocery stores and other online delivery services. This strategy not only attracts time-constrained customers but also emphasizes Zepto’s commitment to convenience and efficiency in the grocery shopping experience.

Advertising and Branding Strategy

To create a strong brand presence, Zepto employs robust advertising and branding campaigns. These campaigns help establish Zepto as a reliable and innovative grocery delivery app in the minds of consumers. The company leverages various advertising channels, including television, print media, digital platforms, and out-of-home advertising, to reach its target audience effectively.

Social Media Meme Marketing

Zepto also harnesses the power of social media meme marketing to engage with its target audience in a fun and relatable way. By creating and sharing humorous and shareable content related to groceries and quick deliveries, Zepto generates buzz on social media platforms, attracting attention and driving brand awareness among potential customers.

Customer Acquisition and Retention Strategy

Zepto places a strong focus on acquiring and retaining customers by implementing effective strategies. The company offers referral programs that incentivize existing customers to invite their friends and family to use the app, resulting in new customer acquisition. Additionally, Zepto prioritizes customer satisfaction, ensuring a seamless and convenient shopping experience to encourage repeat purchases and long-term customer loyalty.

Zepto’s Future Goals

As Zepto continues to solidify its position in the quick-commerce industry, the company has set its sights on ambitious future goals. These goals are centered around expanding its dark store network, implementing convenience fees, and potentially going public in the near future.

Dark Store Expansion

One of Zepto’s key future goals is to expand the number of dark stores in operation. Dark stores have proven to be instrumental in ensuring quick and efficient deliveries within a short radius. By increasing the number of dark stores, Zepto aims to enhance its delivery capabilities, cater to a larger customer base, and generate higher revenues.

Implementing Convenience Fees

In order to sustain and enhance its service offerings, Zepto plans to introduce convenience fees. Once the company has established a sizable customer base, these fees will enable Zepto to maintain its high-speed deliveries while covering operational costs. By implementing convenience fees strategically, Zepto can continue to provide swift and efficient grocery delivery services to its loyal customers.

Potential Public Listing

With its rapid growth and impressive market presence, Zepto may consider a public listing in the next 2-3 years. Going public could serve as a major milestone for the company, allowing it to access additional financial resources, expand its operations even further, and solidify its position as a key player in the quick-commerce industry. A public listing would not only fuel Zepto’s growth but also increase its market visibility and potential for long-term success.

As Zepto sets its sights on the future, the company aims to expand its dark store network, introduce convenience fees, and potentially go public in the next few years. These strategic goals align with Zepto’s mission to revolutionize the quick-commerce industry and provide customers with fast and convenient grocery deliveries.

Challenges for Zepto

While Zepto has experienced significant success in the online grocery delivery market, it still faces several challenges that could impact its growth and market position.

Customer Acquisition

One of the key challenges for Zepto is customer acquisition. With existing players in the market and intense competition, attracting and retaining customers is crucial for the company’s success. Zepto must continuously invest in marketing strategies and promotions to differentiate itself and build a strong customer base.

Price Power Maintenance

Offering quick deliveries within 10 minutes comes at a cost for Zepto. The company must carefully balance price power maintenance while providing efficient and fast delivery services. It needs to ensure that its pricing remains competitive in the market while also covering the expenses of maintaining its operations.

Income Economies

Managing income economies is another challenge for Zepto. As the company aims to expand its operations and increase its customer base, it needs to operate efficiently to achieve profitability. Optimizing processes, reducing wastage, and controlling expenses are critical to ensuring sustainable growth.

Competitor Threats

Zepto faces threats from competitors with higher daily earnings and larger investments. These competitors have the potential to capture market share and pose a challenge to Zepto’s position in the industry. To counter this, Zepto must continuously innovate, deliver exceptional customer experiences, and differentiate itself from the competition.

Zepto’s Target Audience

Zepto’s target audience comprises young adults and the modern generation, who are seeking quick and convenient grocery delivery services. This demographic is accustomed to the fast-paced lifestyle of the digital age and values efficiency and time-saving solutions. Zepto’s appeal lies in its promise of delivering groceries within 10 minutes, offering a hassle-free shopping experience.

The app’s focus on technology and its seamless user interface align with the preferences of the young adults and the modern generation who are well-versed in using digital platforms for their everyday needs. Zepto understands the demands of this target audience and has tailored its services to meet their expectations.

By leveraging its efficient delivery network and utilizing advanced technologies, Zepto caters to the needs and preferences of young adults and the modern generation, ensuring that their grocery shopping experience is not only fast and convenient but also enjoyable.

Why Zepto Appeals to Young Adults and the Modern Generation

Zepto’s appeal to young adults and the modern generation is driven by several key factors:

The 10-minute delivery promise: This target audience values quick and efficient solutions. Zepto’s commitment to delivering groceries within 10 minutes resonates with their need for instant gratification and time optimization.
Seamless technology integration: The app’s user-friendly interface and intuitive navigation make it easy for young adults and the modern generation to engage with and navigate through the platform. The modern generation’s familiarity with technology allows them to embrace Zepto’s digital solution without hesitation.
Convenience and time-saving: Zepto’s quick delivery service eliminates the need for time-consuming trips to physical stores. Young adults and the modern generation can focus on their busy schedules and prioritize their time efficiently, relying on Zepto to deliver their groceries conveniently to their doorstep.
Wide range of products: Zepto offers a diverse selection of groceries, fresh produce, household items, and personal care products. This appeals to young adults and the modern generation who appreciate convenience and a one-stop-shop solution for all their daily needs.
Focus on sustainability and quality: The modern generation is often conscious of environmental and health-related issues. Zepto’s commitment to quality products and sustainable operations resonates with the values and priorities of this target audience.

By understanding and catering to the needs of young adults and the modern generation, Zepto has successfully positioned itself as a leading grocery delivery app in the quick commerce industry, delivering on its promise of fast, convenient, and reliable services.

Zepto, with its innovative marketing strategy and focus on providing a seamless 10-minute delivery service, has successfully disrupted the quick commerce industry. The company’s adoption of the dark store model, coupled with efficient delivery processes and a well-thought-out marketing mix, has played a pivotal role in its achievements.

Looking ahead, Zepto has ambitious goals, including expanding its operations to reach more customers and retaining its existing user base. Additionally, the company is poised to consider a potential public listing, which would further accelerate its growth and solidify its position in the market .

With its unique approach and robust marketing efforts, Zepto continues to make waves in the online grocery delivery market. By prioritizing customer satisfaction through lightning-fast deliveries and an extensive selection of products, Zepto is setting the bar high for competitors in the quick commerce industry.

What is Zepto?

How much has zepto’s pricing increased in the past 11 months, who are the founders of zepto, how many repeat customers does zepto have, how much funding has zepto raised, what are the plans for zepto’s funding, how does zepto achieve 10-minute delivery, what is locus, what is the ppb formula, what is zepto’s dark store business model, what products does zepto offer, how does zepto ensure efficient order fulfillment, what marketing channels does zepto utilize, what is zepto’s unique marketing strategy, what are zepto’s future goals, what challenges does zepto face, who is zepto’s target audience, how has zepto disrupted the quick commerce industry, related posts.

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Digital Marketing

Zepto Case Study | Delivering Groceries in 10 Mins

There are many food delivery apps in India, but if we talk about the fastest delivery app then the first name is Zepto.

In fact, Weezy, Gorillas, Jokr, Swiggy Instamart, and Grofers are just a few companies around the world competing with the primary objective of reducing delivery times and making products available in 10-15 minutes, and Zepto is one of them.

In this article, we will share with you a case study of Zepto and its business model.

The Founders

Zepto was founded in April 2021 by two 19-year-old friends, Kaivalya Vohra (CTO) and Aadit Palicha (CEO). They both went to Stanford University and were supposed to get a bachelor’s degree in computer science, but instead decided to build Zepto.

Aadit Palicha

Aadit Palicha is the CEO and co-founder of both Kiranakart and Zepto. After completing an IB Diploma from GEMS Education in Mathematics and Computer Science, Pallicha went on to complete a bachelor’s degree in Computer Science from Stanford University. Aadit then completed Y Combinator Grade: W21, and started with Pravasi as Project Lead. Aadit Palicha founded his first startup, GoPool when he was just 17 years old. He left it in April 2020 and founded Kiranakart and then Zepto.

Kaivalya Vohra

Kaivalya Vohra is the co-founder and CTO of Kiranakart and the co-founder and CTO of Zepto. He is also a graduate of Stanford University in computer science and went to Y Combinator alongside Aadit.

Zepto – Startup Story

Many of us have “startup ideas ,” but even the most creative among us have a hard time visualizing them. Both Palicha and Vohra enrolled at Stanford to study computer science, but instead left to pursue their business interests.

During the COVID-19 outbreak, the concept of Zepto arose from the confines of their homes. Due to the increasing demand for delivery services, groceries and other necessities will arrive in a matter of days, creating a void for quick delivery.

As a result, Zepto was born with all this knowledge.

After working on a ride-hailing computing app for children, the founders of Zepto called off the Zepto project due to the COVID lockdown in the country.

The first startup of Palicha and Vohra is Kiranakart. As the name expresses the delivery of groceries. KiranaKart tieup with local groceries stores and deliver grocery to doorsteps under 45 minutes.

Zepto: Mission and Vision

As both, the founders faced a problem during their college time. He decided to solve that problem by focusing on the local grocery store. After that, he founded Zepto and created a chain system that believes in grocery delivery in 10 minutes.

Business Model and Revenue Model

Zepto delivers groceries in ten minutes through a system of dark storefronts and mini-warehouses on 90% of orders. It’s operates in the Quick Commerce segment of India. It is designed to be customer-centric and is built around an instant service model.

90% of Zepto orders are delivered through dark storefronts and mini-warehouses. The company operates in the Quick segment in India. App is designed customer-centric and the model is developed on the immediate service model.

To confirm the flow in delivery, Aadit says, Zipto’s average delivery is 8 minutes 47 seconds.

Dark storefronts are mini-warehouses of Localists, where zepto employe received, packed and deliver orders to online shoppers.

Location intelligence and geographic data, such as topography, population, road patterns, traffic dynamics, weather, last mile supply availability, real estate prices, and so on, is said to help Zepto optimize its network.

Also check Top 12 Food Tech Startups in India

In Conclusion

Zepto’s simple yet effective business model has made it one of the largest food aggregators in the world and there is a lot for any aspiring entrepreneur to learn from. It provides a combined solution to the problems of the users in the food market and takes care of the entire process till the order reaches their doorstep.

It tries to work on various new business endeavors while working on better implementation and improvement of existing applications and services. As they say, the story has just begun. To achieve this is to achieve greater heights and reach more and more audiences all over the world.

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Zepto Success Story | Business model and case study

Zepto is a grocery shopping app that delivers groceries in 10 minutes. Customers can choose from thousands of popular items including farm fresh vegetables and fruits, groceries, dairy and more at Zepto best prices and a Zeptonian Rider will be at the door in about 10 minutes. Zepto is growing at a 200% increase in price in 11 months, with 60% repeat customers.

In April 2021, two friends, Kaivalya Vohra CTO and Aadit Palicha CEO, both 19 years old, formed Zepto. Both were admitted to Stanford University and were scheduled to acquire a Bachelor of Computer Science, but instead chose to build Zepto. In early September 2020, they started Kirana Mart which was a supermarket delivery startup similar to Big Basket and Grofers. However, until January 2021 it was known as Zepto.

Read Also : Dabur India Sucess Story of Serving last 136 years

About Zepto

Zepto, a startup based in Mumbai, offers a 10 minute grocery delivery service. Aadit Palicha and Kaivalya Vohra launched Zepto, a company known for delivering groceries in 10 minute.

Worked with 86 dark store owners in thirteen different areas in 2021, generating over a million deliveries. To fulfill orders promptly, Zepto uses its network of ‘cloud stores’ or micro warehouse.

Zepto secret is its ability to routinely produce over 2,500 product for delivery in less than ten minute. It’s at the heart of everything the firm does, and that why they’ve been able to develop so quickly while maintaining incredible customerm loyalty.

With the idea of the dark stores, the Parel based express grocery delivery business has reduced the time it take to deliver groceries to just 10 minute. Express trade is reportedly the next important step that the supermarket delivery sector hopes 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 Highlight

Zepto business model and revenue model.

Zepto delivers groceries in ten minute through a system of dark storefront & mini warehouses, on up to 90% of order. Zepto work in the fast trading segment of India. It is designed to be customers centric & built around the instant service model.

To ensure a seamless delivery experience, Aadit says his average delivery times is 8 minute and 47 second. Through a chain of dark stores or retail distribution center, the Mumbai based company employ a hotspot approach to largely cater to digital shoppings.

A dark store is a small neighborhood store that customer can’t visit, but shop online to receive packaged delivery. While dark store are not new to the Indian industry, Aadit believes the idea has yet to be fully explored. Population, traffic dynamic, topography, road patterns, weather conditions, last mile operational improvement, real estate prices and other geographic data and local intelligence help Zepto optimize your connectivity. In addition, the startup dark warehouses and cold rooms are custom designed to meet particular criteria, such as ease of travel, allowing packer to move as quickly as possible to fill order.

Location intelligence and geographic data such as topography, population, road patterns, traffic dynamic, weather, last mile supply availability, real estate values, etc. are said to help Zepto to optimize your network.

Zepto’s 10 Minute Delivery

Zepto introduced its notion of 10 minute delivery. The whole sports and the situation were altered. Customer were agitated, but there was little they could do about the loss of many possibilities in the market. Zepto exploited people’s impatience with its 10 minutes delivery value proposition.

Zepto Industry

Electronic grocery delivery is gaining traction in India with a $1 trillion retail markets where grocery purchases account for the vast majority of consumers spending. The Indian electronic grocery markets was valued at $2.9 billions in 2020 and is expected to grow at a rate of 37.1% between 2021 & 2028.

The sector has expanded in prevalence in recent month as a result of evolving customers habit, increasing urbanization & a tech savvy generation that prefer to shop online.

A report by Redseer mentioned that the fast trading segment was valued at $30 millions in 2021. The same segment was predicted to become a $5 billion markets in 2025, with 15X growth.

As their standard of living rises & their daily schedules become more stringent, consumer are flocking to convenient, personalized internet platform to shop for groceries instead of walking to local stores.

After pandemic, the popularity of online grocery delivery became more & more apparent. As a consequence of social distancing restriction, consumer are turning to online grocery shopping, which is not only convenient but also safer.

Zepto Founders and Team

Aadit Palicha and Kaivalya Vohra, both 19 Year old childhood friend, created Zepto after leaving Stanford University renowned computer science departments to return home to India and start a business. The firm was founded in September last years & started operations in April this year.

Addit Palicha

Aadit Palicha is the CEO and Co founder of Kirana Kart and Zepto. After completing an IB diploma from (GEMS Education) in Mathematics and Computer Science, Palicha completed a bachelor degree in Computer Science from Stanford University. Aadit then completed Y Combinator Grade (W21) & started with PryvaSee as project lead. Aadit Palicha later founded GoPool, his first startups, when he was just 17 year old. He left the company in April 2020 and founded Kirana Kart and then Zepto.

Kaivalya Vohra

Kaivalya Vohra is the Co Founder and CTO of Kirana Kart & the Co Founder and CTO of Zepto. He also graduated in Computer Science from Stanford University and was also involved in Y Combinator, along with Aadit.

Zepto Shareholdings

Zepto is backed by nine investors. The most recent investors are Contrary and Glade Brook Capital Partners. The company is valued at Rs 4,200 crores $570 million, and has raised a total of Rs 1,200 crores $160 million.

Zepto Starting Story

Many of us have startups idea, but even the most creative struggle to see them through. Palicha & Vohra had enrolled at Stanford to pursue a Computer Science degree, but dropped out to pursue their business passion.

During the Covid outbreak, the concept for Zepto grew out of the limitation of their home. An increase in demand for delivery services meant that groceries & other necessities would arrive in a couple of days, creating a void for fast delivery. As a result, Zepto was created with all this information.

These teenagers were abruptly stopped, due to Covid regulation, detained in their Mumbai home after significant collaboration on many project, including a transportation app for children. Despite the fact that grocery delivery, which was considered important by local authorities, was still allowed in much of the country as the virus spread, the duo struggled to get their supplies as the disease spread.

While Zepto is in the spotlight, Palicha & Vohra first venture, Kirana Kart, did not receive the same acclaim. Zepto, on the other hand, is inspired by Kirana Kart. KiranaKart, as the name implies, was a supermarket delivery service. He had made arrangement with Kirana merchant to provide groceries in 45 minutes or less. Global Founder Capital, 2 AM Ventures, Contrary Capital & angel investor led a pre seed round of $730,000. At that time, Vohra & Palicha planned to make the first deliveries of 1.5 lakh at a cost of Rs 1.

Zepto Mission and Vision

As two singles living alone, the founder found it more difficult to get food, so they focused their app on grocery delivery. So while Kirana Kart, his first startup, tried to make grocery delivery easier for Kirana, Zepto aims to shorten delivery time.

Zepto future goals

In the future, Zepto intends to increase the number of dark store to increase the number of order. Once they start retaining customer, they want to starts charging convenience fees. Although Zepto may face serious dangers in the near future due to the fierce rivalry, it is amazing how two 19 year old boy jump up and shake the root of massive corporations like Big Basket or Blinkit among other. It could also announce its public listing in 2 or 3 years.

Zepto Challenges

Zepto has faced some challenge lately, and in one of the recent ones, there were instances of a founder and investors being wrong within the fast trading delivery startups. Ansh Nanda, an alleged co founder of the startups, said the other co founder a& nd Nexus Ventures forced him to give up his stake in the startups. This was brought forward by Nanda, who filed an FIR against Zepto co founder & Nexus Ventures partner Suvir Sujan. However, the co founder promptly responded to the same by approaching the Delhi High Court. Zepto is the third startups backed by Nexus and where one of the co founder has been named in an FIR. Yolo Bus & Acko were two other companies that dealt with the same thing before.

Zepto – Success Story, Business Model, Revenue, Growth & Funding

Zepto – Success Story, Business Model, Revenue, Growth & Funding 5 min read

Zepto, a Mumbai-based startup, provides a 10-minute grocery delivery service. Zepto, a company noted for delivering groceries in 10 minutes, was founded by Aadit Palicha and Kaivalya Vohra.

In 2021, it collaborated with 86 dark store owners in thirteen different locations, resulting in over one million deliveries. Zepto uses a network of ‘cloud shops’ or micro-warehouses to fulfil orders quickly.

The secret to Zepto’s success is its ability to produce 2,500+ items in under 10 minutes on a regular basis. It’s at the centre of everything the business does, and it’s how they’ve grown so swiftly while retaining such strong client loyalty.

Zepto has reduced the time it takes to deliver goods to only 10 minutes by utilising the dark store concept. According to reports, the grocery delivery sector is seeking to profit on quick commerce as the next big thing. Startups such as Zepto in India and Fridge No More in New York City are among the fastest-growing firms in the faster-delivery sector.

Table of Contents

Zepto Success Story

Many of us have “startup ideas,” yet even the most inventive among us struggle to carry them through. Palicha and Vohra had both enrolled at Stanford to pursue a Computer Science degree but had dropped out to pursue their entrepreneurial interests instead.

During the Covid-19 epidemic, the idea for Zepto sprang from the confines of their homes. Because of an increase in demand for delivery services, groceries and other needs would arrive in a couple of days, leaving a vacuum for speedy delivery. As a result, Zepto was born with all of this knowledge.

Because of Covid rules, these teens were unexpectedly held inside their Mumbai homes after considerable collaboration on various projects, including a ride-hailing commuting app for minors. Even while grocery delivery, which was deemed crucial by local authorities, was still authorised across most of the country as the virus spread, the founders struggled to collect their supplies as the infection spread.

While Zepto is the centre of attention, Palicha and Vohra’s previous endeavour, KiranaKart, was not as well received. KiranaKart, on the other hand, inspired Zepto. KiranaKart was, as the name suggests, a grocery delivery service. It has agreed with Kirana merchants to deliver groceries in 45 minutes or less. Global Founders Capital, 2 AM Ventures, Contrary Capital, and angel investors led a $730,000 pre-seed investment. Vohra and Palicha intended to make the first 1.5 lakh deliveries at a cost of Rs 1 crore at the time.

Business Model

Zepto distributes groceries in 10 minutes or less via a network of dark shops and mini-warehouses on up to 90% of orders. Aadit claims that their average delivery time is 8 minutes and 47 seconds to assure a faultless delivery experience. The Mumbai-based firm uses a hotspot strategy to cater mostly to digital transactions through a system of dark storefronts or retail distribution centres.

A dark store is a small neighbourhood business that consumers are unable to enter and must order online for package delivery. While the concept of dark shops is not new to the Indian market, Aadit feels it has yet to be fully explored. Zepto optimises its connection by using population, traffic dynamics, geography, road patterns, weather conditions, last-mile operational improvement, real estate pricing, and other geographic data and local intelligence. Furthermore, the startup’s dark warehouses and cool rooms are custom-designed to meet certain requirements such as ease of transit, allowing packers to fulfil orders as quickly as feasible.

Topography, population, road patterns, traffic dynamics, weather, last-mile supply availability, real estate values, and other geographic data are said to help Zepto optimise its network.

Zepto, a five-month-old startup, has raised $100 million in a Series C round led by Y Combinator’s Continuity Fund at a valuation of $570 million, a twofold increase from its previous valuation of $60 million just 45 days ago. The round’s new and old investors included Lachy Groom, Glade Brook, Global Founders Capital, Breyer Capital, Nexus, and Contrary Capital.

Also Read: Blinkit (formerly Grofers) – Success, Business Model, Revenue & Funding

Growth and Revenue

Zepto is gaining traction in Bengaluru, Mumbai, and Delhi-NCR, with Hyderabad, Chennai, Pune, and Kolkata expected to follow in the coming months. Its technical headquarters are in Bengaluru, but its operations are based in Mumbai. Zepto has hired senior executives from Dream11, Flipkart, Pharmeasy, Uber, and Pepperfry.

Zepto also has engineering, operations, marketing, and finance opportunities available. Palicha claims a month-over-month growth rate of 200 percent and a monthly retention rate of 78%.

Future Plans

Palicha, the co-founder, emphasized that no one in India has completely understood marketing. He went on to say that if you look at a few older organizations that are trying to implement this approach, you’ll notice that many of them are unfocused and lack the consistency to operate on a single model. They become involved in a variety of activities, which is the most serious problem in any significant corporation.

Express delivery is not a new concept; most existing e-grocers have tried it before, with variable results. Following the Covid-19 pandemic’s increased use of online groceries, these platforms have reintroduced same-day delivery to consumers, especially through the dark-store concept.

Company’s website – https://www.zeptonow.com/

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Revolutionizing grocery deliveries: zepto's journey to 10-minute deliveries.

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Order processed, the challenge and how vinculum helped.

In its pursuit of a 10-minute delivery promise amidst inventory challenges, Zepto faced hurdles in inefficient inventory distribution, complex B2B order processing, real-time inventory management, and compliance issues. Vinculum's Vin eRetail provided tailored solutions, seamlessly integrating Warehouse Management, implementing 50+ custom features, ensuring customs compliance, and integrating with ClearTax for B2B operations. The multi-layer SAP integration enhanced data flow and operational efficiency. Vinculum's innovations empowered Zepto to overcome these challenges, optimizing operations and ensuring a responsive supply chain for the dynamic market demands.

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Unveiling Zepto: Case Study on India’s Quick Commerce Unicorn

Zepto: A Pioneer in the Indian Unicorn Startup Ecosystem

Understanding zepto’s business model:.

Zepto, a startup that was founded in 2014, has developed a unique business model that sets it apart in the Indian market. As a company that provides quick-commerce services, Zepto focuses on delivering groceries and essentials to customers in a remarkably short time frame. This model capitalizes on the growing demand for speed and convenience in urban areas. Zepto’s approach combines advanced technology, efficient supply chain management, and a deep understanding of local consumer behavior. This business model has allowed Zepto to carve out a niche in the competitive e-commerce industry in India, contributing to its rapid growth and success as a unicorn company.

Zepto’s Growth Trajectory:

Zepto’s growth trajectory has been impressive since its inception. Achieving unicorn status in 2018, the company quickly made a name for itself in the Indian startup ecosystem. The startup’s ability to raise significant funding played a crucial role in its expansion. For instance, becoming the 100th Indian unicorn after it raised substantial capital in March 2022, Zepto demonstrated its potential for rapid scaling and market penetration. The company’s growth has been fueled by its focus on customer satisfaction and operational efficiency, enabling it to expand its services across major cities in India.

Challenges Faced by Zepto as an Indian Unicorn:

As an Indian unicorn, Zepto has faced its share of challenges. One of the primary challenges is the highly competitive e-commerce industry in India, where established players and new entrants vie for market share. Additionally, managing rapid growth while maintaining service quality and customer satisfaction is a significant challenge. Zepto has also had to navigate the complexities of supply chain management and logistics in a diverse and vast market like India. Despite these challenges, Zepto’s innovative approach and agile business model have enabled it to overcome obstacles and continue its growth trajectory.

Zepto’s Impact on the Indian Startup Landscape:

Zepto’s success has had a considerable impact on the Indian startup landscape. As the third Indian unicorn minted in 2022, it has added to the growing number of unicorns in India, showcasing the country’s thriving entrepreneurial ecosystem. Zepto’s journey to becoming a unicorn has inspired other startups in India, proving that innovative business models focused on consumer needs can lead to substantial success. The company’s achievements have also attracted more attention and investment to the Indian startup sector, further boosting the industry’s growth and innovation.

Zepto’s Unique Position Among Indian Unicorn Companies:

Zepto holds a unique position among Indian unicorn companies. Unlike many startups that turn unicorns in the fintech or software sectors, Zepto has carved a niche in the quick-commerce space. Its focus on delivering groceries and essentials rapidly sets it apart from other e-commerce giants. This unique positioning, combined with its tech-driven approach and emphasis on customer experience, has enabled Zepto to stand out in the unicorn league. The company’s success story is a testament to the diverse opportunities available in the Indian startup ecosystem and the potential for innovative companies to disrupt traditional business models.

How Zepto’s Unicorn Status Reflects India’s Startup Landscape

The role of zepto in shaping india’s startup ecosystem:.

Zepto, having joined the unicorn club, plays a significant role in shaping India’s startup ecosystem. As a rapidly growing e-commerce company, Zepto exemplifies the dynamism and potential of Indian startups. Its innovative business model and rapid delivery system have set new standards in the e-commerce sector across India. By achieving unicorn status, Zepto has not only demonstrated its success but also highlighted the fertile ground that India offers for startups with disruptive ideas. The company’s journey reflects the evolving landscape of Indian entrepreneurship, where agility, customer-centricity, and technology-driven solutions are key to success.

Zepto’s Contribution to Fostering Innovation in India:

Zepto’s rise to unicorn valuation is a testament to its contribution to fostering innovation in India. As an e-commerce company that promises rapid delivery, Zepto has innovated in logistics and supply chain management, setting a new benchmark in the industry. This has not only benefited consumers but also inspired other startups to innovate and improve their services. Zepto’s success story encourages budding entrepreneurs across India to pursue innovative solutions and challenge the status quo. The company’s growth trajectory showcases how startups valued for their innovative approaches can scale rapidly and make a significant impact in their respective industries.

Challenges and Opportunities for Unicorn Startups in India:

Unicorn startups in India, like Zepto, face a unique set of challenges and opportunities. While achieving a billion valuation is a significant milestone, sustaining growth and expanding in the competitive market of cities in India requires strategic planning and innovation. These companies must navigate challenges such as regulatory changes, intense competition, and evolving consumer preferences. However, the opportunities are vast. The growing number of unicorns in India, including fintech unicorn companies and e-commerce giants, indicates a large market with immense potential. The success of these companies, including Zepto, inspires confidence among investors and entrepreneurs alike, fostering a vibrant startup environment.

Zepto’s Influence on Attracting Investments to Indian Startups:

Zepto’s achievement as the first unicorn of 2023 has a positive influence on attracting investments to Indian startups. Its success story, marked by rapid growth and innovation, reinforces investor confidence in the Indian market. Venture capital firms like Sequoia India, known for backing successful startups, are likely to be further encouraged by Zepto’s success. The company’s journey to becoming a unicorn highlights the potential for high returns in the Indian startup ecosystem, attracting both domestic and international investors. Zepto’s success serves as a beacon, showcasing the lucrative opportunities that Indian startups offer, thereby drawing more capital into the country’s burgeoning startup landscape.

Comparison with Other Indian Unicorn Companies:

Comparing Zepto with other Indian unicorn companies reveals interesting insights into the diverse startup landscape of India. While Zepto became the first Indian unicorn in 2023, it joined a list that includes a variety of sectors, from fintech to e-commerce. Each unicorn, including India’s first unicorn, has its unique journey and business model. For instance, India’s first tech unicorn focused on a different sector, yet like Zepto, it showcased rapid growth and innovation. The number of unicorns in India, which saw a significant rise in the unicorn club in 2021, indicates a healthy and diverse ecosystem. These companies, despite their differences, collectively underscore the potential of the Indian market and the capability of Indian entrepreneurs to build globally competitive businesses.

Zepto’s Journey to a Billion-Dollar Valuation

Factors contributing to zepto’s valuation growth:.

Zepto’s journey to a billion-dollar valuation is marked by several key factors. The company was founded in 2014 with a unique vision, which played a crucial role in its rapid growth. Its innovative business model, focusing on quick commerce and efficient logistics, appealed to the fast-paced lifestyle of urban consumers. Zepto’s ability to secure significant funding, including $100 million from investors, provided the necessary capital to scale operations and expand its market reach. The startup’s emphasis on technology and customer experience helped it stand out in a competitive market. Additionally, Zepto’s strategic marketing and brand positioning contributed to its growing popularity and valuation.

Zepto’s Position in the Unicorn Club in 2023:

By 2023, Zepto had established itself in the unicorn league, joining the ranks of other prominent Indian unicorn startups. Its position in the unicorn club is noteworthy, considering the competitive startup ecosystem in the world. Zepto’s rapid ascent to unicorn status, marked by its unique market approach and innovative service model, sets it apart from its peers. The company’s success story is a testament to the potential of tech startups focused on vernacular content and localized solutions in India. Zepto’s achievement reflects the evolving landscape of Indian startups, where agility and customer-centricity are key to success.

Impact of Zepto’s Valuation on the Indian Unicorn Landscape:

Zepto’s valuation has had a significant impact on the Indian unicorn landscape. Its success has contributed to the growing number of unicorns in India, which saw a remarkable increase in recent years. As one of the few Indian startups to achieve unicorn status in a relatively short period, Zepto has become a household name, inspiring other entrepreneurs. The company’s valuation has raised the bar for startups in India, demonstrating the immense potential for growth and success in the Indian market. Zepto’s story is encouraging for the parent companies of emerging startups, like the gaming unicorn Games24x7 and others, showing that innovative business models can lead to substantial valuations.

Zepto’s Potential Influence on Future Unicorns in India:

Zepto’s success and valuation are likely to have a lasting influence on future unicorns in India. As a company that achieved unicorn status in February 2023, it serves as a role model for startups aspiring to reach similar heights. Zepto’s journey demonstrates the importance of innovation, customer focus, and strategic funding in building a successful startup. Its achievement is likely to encourage more venture capital investment in Indian startups, fostering a more vibrant and dynamic ecosystem. The story of Zepto, a tech unicorn focused on vernacular content, may particularly inspire startups in niche markets to pursue their unique visions and become leaders in their respective domains.

Zepto’s Unique Market Positioning for Achieving Unicorn Valuation:

Zepto’s unique market positioning has been instrumental in its journey to achieving unicorn valuation. Unlike the first Indian SaaS or the first company to join the unicorn club in 2015, Zepto carved a niche for itself in the quick-commerce sector. Its focus on rapid delivery and customer satisfaction set it apart in cities across India. The startup’s ability to understand and cater to the specific needs of urban Indian consumers played a crucial role in its growth. This unique positioning, combined with robust technology infrastructure and efficient operations, enabled Zepto to quickly scale and attract significant investment, leading to its remarkable valuation and entry into the prestigious unicorn club.

The Significance of Zepto Becoming India’s First Unicorn of 2023

The significance of zepto becoming india’s first unicorn of 2023:.

Zepto’s achievement as the first unicorn in 2023 is a significant milestone for the Indian startup ecosystem. This accomplishment not only marks Zepto’s entry into the prestigious unicorn club but also sets a positive tone for the year ahead. It reflects the growing maturity and dynamism of unicorns in India, showcasing the country’s ability to nurture startups that can achieve billion-dollar valuations. Zepto’s success as the first unicorn of 2023 is a beacon of inspiration for other startups across India, proving that with the right blend of innovation, strategy, and execution, reaching unicorn status is an attainable goal. This milestone is a testament to the potential of Indian startups to make a global impact.

Zepto’s Role in Representing India’s Technological Advancements:

Zepto’s rise to unicorn status underscores India’s significant advancements in technology and innovation. As a company that turned unicorn, Zepto exemplifies how Indian startups are leveraging technology to disrupt traditional business models and offer novel solutions. Its success is indicative of the growing prowess of Indian tech startups in the global arena, particularly in sectors like e-commerce and logistics. Zepto’s journey reflects the technological evolution within the startup ecosystem in India, highlighting the country’s capacity to produce tech-driven businesses that can compete on a global scale.

Zepto’s Impact on the Global Perception of Indian Startups:

Zepto’s unicorn valuation has positively impacted the global perception of Indian startups. By becoming the first Indian unicorn in 2023, Zepto has showcased the high caliber of innovation and entrepreneurship present in India. This achievement has helped in altering the global narrative about Indian startups, highlighting them as significant players in the international business arena. The success of Zepto, along with other unicorns of India, attracts global attention and investment, further elevating India’s position in the global startup landscape. It demonstrates that Indian startups are capable of achieving substantial growth and are worthy of international recognition and investment.

Implications of Zepto’s Success on the Indian Economy:

Zepto’s success as a unicorn has broader implications for the Indian economy. Its billion-dollar valuation contributes to the increasing number of unicorns in India, signaling a robust and thriving entrepreneurial environment. This growth stimulates economic development, job creation, and technological advancement across various cities in India. Zepto’s journey from a startup to a unicorn also encourages more venture capital inflow into the country, as investors seek to capitalize on the burgeoning startup scene. The success of companies like Zepto underlines the significant role startups play in driving innovation and economic growth in India.

Zepto’s Role as an Inspiration for Aspiring Indian Entrepreneurs:

Zepto’s journey to becoming the first unicorn of 2023 serves as a source of inspiration for aspiring entrepreneurs across India. Its story demonstrates that with perseverance, innovation, and a clear vision, startups can achieve remarkable success. Zepto’s rise encourages budding entrepreneurs to pursue their business ideas and contributes to fostering a culture of entrepreneurship in India. The company’s success story is likely to motivate a new generation of entrepreneurs to innovate and take risks, further enriching the Indian startup ecosystem.

Reflections on Zepto as India’s Trailblazing Unicorn Startup for 2023:

As India’s trailblazing unicorn startup for 2023, Zepto’s journey reflects the evolving and vibrant nature of the Indian startup ecosystem. Its rapid growth and significant valuation mark a new chapter in the story of Indian entrepreneurship. Zepto’s success is not just about its financial achievements but also about its role in paving the way for future startups in India. It stands as a symbol of what can be accomplished in the Indian market, inspiring confidence among both entrepreneurs and investors. Zepto’s story is a testament to the potential of Indian startups to innovate, scale, and make a global impact, setting the stage for an exciting future for the Indian startup landscape.

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Zepto Marketing Strategy | What Drove Zepto's Success in Quick Commerce?

Anish Sharma , Akshat Hawelia

The quick commerce industry is one of the fastest-growing industries in India, and Zepto has fueled this industry with its innovative marketing strategies. Zepto, India's fastest online grocery delivery app, has disrupted the entire quick commerce market in a short span of time.

Convenience and super-fast delivery are the two main aspects of Zepto's incredible marketing strategy. It is on its way to becoming India's second-youngest unicorn. Since its inception, it has expanded its footprint in cities like Bangalore, Chennai, Delhi, Ghaziabad, Noida, Gurgaon, Hyderabad, Kolkata, Pune, and Mumbai.

There are a lot of interesting things you will get to know in this article, like how a brand acquires and retains customers where other big players are struggling to do so.

Marketing Mix of Zepto Marketing Strategy of Zepto

10-Mins Delivery Strategy

Advertising and branding strategy, social media meme marketing, customer acquisition and retention strategy, referral programs, marketing campaign of zepto, marketing mix of zepto.

Zepto stands out in the market with its 10-minute grocery delivery, catering to time-conscious customers. Offering a diverse range of high-quality products, including groceries, fresh produce, household items, and personal care products, Zepto ensures customer satisfaction and encourages repeat business. The introduction of private-label products enhances brand loyalty by providing quality at competitive prices, making Zepto a compelling choice in the fast-paced online grocery landscape.

Zepto adopts a strategic pricing approach to enhance its market position by offering competitive pricing that attracts customers and ensures a sustainable market share. The company uses dynamic pricing to adjust its prices in response to demand and competition, thus optimizing revenue and profitability. Moreover, Zepto actively engages customers through various promotional offers, including discounts and coupons, aimed at not only drawing new patrons but also fostering loyalty and encouraging repeat business.

Zepto primarily operates through its mobile app, which is designed to make grocery ordering quick and easy for busy customers. The company has strategically located dark stores to ensure speedy and efficient order fulfillment. Zepto has also partnered with a variety of delivery services to guarantee that orders are delivered promptly to customers' doorsteps. This integrated approach demonstrates Zepto's dedication to providing convenience and efficiency in the grocery delivery industry.

Zepto employs a diverse marketing approach, utilizing digital channels like social media and influencer marketing, alongside out-of-home advertising for brand visibility. Positive media coverage enhances its reputation, while meme marketing fosters audience engagement. A referral program incentivizes customer loyalty, contributing to both acquisition and retention. Zepto's concise and varied strategies solidify its dynamic presence in the market.

Marketing Strategy of Zepto

Zepto's marketing strategy has played a crucial role in growing its business to this extent. A lot of innovative steps have been taken by the company to support and boost its business growth. Zepto's target audience is generally young adults and the modern generation. Here is the detailed overview you must read.

The idea of online grocery delivery is not new. Startups like Dunzo and Blinkit are already providing these services. The fact that distinguishes Zepto from all its competitors is its 10-minute delivery of groceries and other products. You might have heard about Zomato Instant, which provides food delivery within 10 minutes, but Zepto is the first player in the grocery delivery segment to offer a 10-minute grocery delivery service.

The idea of 10-minute grocery delivery is unique, but it was not that easy to implement. To fulfill its promise to deliver groceries in the specified time, Zepto introduced the concept of the dark store model . The dark store is like a fulfillment center for Zepto; it is not accessible to the public but is efficient enough to fulfill orders rapidly.

Artificial intelligence is used by Zepto to pick, pack, and transport orders in leaps and bounds. Whenever any customer places an order, a person with a tablet is assigned to pick up and pack the order within 60 seconds. It means that at the time you make the payment, someone is already preparing your order for dispatch. The company claims that 8 minutes and 40 seconds is the average delivery time they have achieved.

Zepto operates its dark store delivery within a 3 km radius, and it doesn't penalize its delivery boy for late delivery. 10-minute delivery is the USP of Zepto, which helps them compete with highly funded quick commerce giants like Swiggy Instamart and Blinkit.

Discounts are a way to attract customers, but as a new player in the segment, offering huge discounts was not a sustainable option for Zepto. Hence, the 10-minute delivery strategy comes out to be a panacea for Zepto.

Zepto Ad - Groceries Delivered in 10 Minutes

There is not only one thing responsible for the success of Zepto, but an incredible advertising strategy has also played an important role in the success. L&K Saatchi and Saatchi is an advertising agency that was assigned to advertise Zepto and build a strong brand image in front of consumers. The main theme of all the ads is to emphasize the 10-minute delivery of Zepto.

Zepto's ads are attention-grabbing ads that suddenly capture the focus, and this is what every brand wants. When a boy suddenly wakes up and runs toward the door, it creates a question in the minds of viewers about why he is running. The twist and excitement of the ad make it capable of grabbing the attention of viewers.

If I try to summarize the above ad in a single sentence, then it is like this: From the time you wake up until the time you sleep, every essential product will get delivered to your doorstep within 10 minutes.

Each ad that was created is meant to make the consumer feel how Zepto is capable of changing their daily grocery shopping habit. Since advertising is the best way to market the product and build a strong brand image, Zepto has fully utilized the benefits of marketing.

Advertising was not only done on social media channels, but it also planted its hoardings in the streets of cities in which Zepto's services are operational.

In today's generation of technology and innovation, we cannot ignore the power of social media. There is a huge chance you'll find your target audience on the social media platform. Hence, every brand is focusing on social media marketing. Zepto is also not behind the race; it leverages the social platform to engage its audience through meme marketing.

For the recently released movie 'Avatar: The Way of Water,' Zepto created a meme to grab the consumer's attention by following the ongoing trend. It's just one example, but if you visit Zepto's social media page, you'll find plenty of such memes.

Meme marketing is a trend today because people often share memes with their loved ones. This will help the brand get some organic reach and, at the same time, promote the brand. Zepto knows the power of memes very well. That's why if you open their page on any platform like Facebook , Instagram , and Twitter , you'll find amazing memes.

Zepto's meme marketing strategy has gained a lot of positive feedback from customers. Along with meme marketing, they sometimes collaborate with famous social media influencers to make videos for them. This tactic helps to create a loyal fanbase and also helps the brand image flourish.

Players in the quick commerce industry like Dunzo, Swiggy Instamart, and Blinkit are well-funded and established. These big giants have already acquired a huge market share in the segment by offering huge discounts and other offers. So it was not easy for Zepto to acquire customers and retain them.

Discounts are not the only things that attract consumers. Consumers are always hungry for something new, and exactly here, Zepto played its game. Acquisition of customers and retaining customers are two different things. Other players in the segment have easily acquired customers but struggled to retain them.

Customers are used to switching platforms and ordering items from the app, where the discount is heavy. In the case of Zepto, it has given discounts and at the same time provided high-speed free delivery. It helps to enhance Zepto's retention rate significantly.

No other players in the segment were making that fast delivery. This eventually leads to an increase in Zepto's consumer base.

Zepto's referral program plays a crucial role in its successful marketing strategy. The program offers unique codes to its users for sharing, which incentivizes both existing and new users with rewards such as discounts. This helps in cost-effective customer acquisition and increases customer retention. The program's seamless integration with social media, multiple reward options, and gamification elements make it a dynamic and impactful tool for Zepto's growth and customer loyalty.

Beyond transactional benefits, Zepto's referral initiative is a brand-building powerhouse, fostering advocacy and community engagement. By creating a positive customer experience and utilizing word-of-mouth influence, the program stands as a testament to the brand's commitment to customer satisfaction and strategic marketing prowess.

Zepto Marketing Strategy - Featuring Usha Uthap, Kailash Kher, Shankar Mahadevan

A marketing campaign is an integral part of any brand's effort to increase its visibility and create brand awareness. The same is true for Zepto. In the IPL 2022, Zepto created and ran a marketing campaign that truly had a new approach.

Most of the time, we have faced the issue of time stretching in different places like airports, hospitals, and restaurants. Because we usually wait for a long time in these places, it became quite common for us, but Zepto addressed this issue and showcased it in its campaign in such a way that, at the same time, it also represented the 10-minute delivery promise of Zepto.

In this campaign, three famous singers—Shankar Mahadevan, Usha Uthup, and Kailash Kher—have given their incredible voices. Three ads have been created for this campaign with the voices of these three singers. They have stretched the time with their voices in such a way that it shows our habit of waiting. At the same time, Zepto implements its tagline of 10-minute delivery.

L&K Saatchi and Saatchi created this campaign very beautifully, and the whole marketing campaign turned out to be a huge success for Zepto.

Zepto Marketing Strategy - Jet-Set-Go

Zepto, one of India's pioneering unicorns, has launched its latest brand campaign with a significant collaboration featuring renowned cricketer Jasprit Bumrah as the brand ambassador. Developed by L&K Saatchi & Saatchi, the 'Groceries delivered at Bumrah Speed' campaign embodies speed, precision, consistency, and rigor. This initiative not only introduces Indian audiences to cutting-edge special effects but also promises an experience comparable to the grandeur of cinema.

The campaign's focal point will be on Disney+ Hotstar, other leading OTT platforms, Zepto's application, social media channels, and various digital platforms. Outdoor advertising will be prominently displayed across major cities where Zepto operates, ensuring widespread visibility and engagement.

Zepto Marketing Strategy - Bus Mein Seat Nahi Milega

Zepto's 'Nahi Milega' brand campaign underscores its commitment, emphasizing that while life may present unattainable challenges, unlimited free deliveries on Zepto are certain.

Zepto adopted an unconventional approach by introducing Uncle Ji, a character from Delhi, several weeks before unveiling their brand campaign. The intention was to disrupt social media with Uncle Ji's distinctive personality, straightforward expressions of reality, and the recurring catchphrase 'Nahi Milega' (won't be available).

Zepto said Uncle Ji's character achieved remarkable organic traction, accumulating 10 million impressions with a substantial 10% engagement rate across all social media platforms. Uncle Ji trended at #6 on Twitter and received endorsements from popular Twitter celebrities and Instagram meme pages, solidifying his status as a cultural icon in India.

Zepto is a young startup, and it has achieved this success in a short period of time because of its incredible marketing strategy. Above are a few insights into Zepto's marketing strategy that give you an overview of how a business can build a strong market presence and increase its visibility.

What are the key components of Zepto's marketing strategy?

The key components of Zepto's marketing strategy include its 10-minute delivery approach, advertising and branding tactics, and social media meme campaigns, all of which contribute to the company's success.

How does Zepto retain its customers?

In the case of Zepto, it has given discounts and at the same time provided high-speed free delivery. It helps to enhance Zepto's retention rate significantly.

How does Zepto provide fast delivery?

To fulfill its promise to deliver groceries in the specified time, Zepto introduced the concept of the dark store model. It is like a fulfillment center for Zepto that is not accessible to the public but efficient enough to rapidly fulfill orders.‌‌‌

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Please note you do not have access to teaching notes, zepto – 10-min grocery delivery service.

Publication date: 8 August 2023

Teaching notes

Supplementary materials.

Teaching notes are available for educators only.

Learning outcomes

Learning objectives are as follows: critically analyze the business model of the Instant Grocery Delivery Model like Zepto; infer the importance of competitor analysis in determining the success of a startup; and analyze customer complaints and develop a corrective action plan.

Case overview / synopsis

The focus of this case is the controversy faced by Zepto due to its aggressive 10-min instant delivery service. This case discusses the negative publicity and criticism faced by Zepto from various influential netizens like members of the parliament, a well-known industrialist and independent experts questioning the 10-min express delivery plan that could endanger the lives of its delivery partners. The case also discusses customer complaints and the negative publicity faced by Zepto in digital forums and social media. The primary focus of this case is the dilemma faced by Zepto’s young founders in resolving the criticism faced by Zepto due to its 10-min delivery model and due to mounting customer complaints regarding poor product quality and deficient service. The key managerial decision that the protagonists are facing is whether should Zepto continue to operate in the 10-min delivery model or should it increase the delivery time to 15 to 20 min.

Complexity academic level

Undergraduate students studying Marketing courses in Commerce and Business Management streams can use this case.

Subject Code

CSS 8: Marketing.

Customer satisfaction
Customer service
Entrepreneurship
Customer complaints
Online grocery delivery
Instant delivery
Customer dissatisfaction

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.

Saldanha, A. (2023), "Zepto – 10-min grocery delivery service", , Vol. 13 No. 2. https://doi.org/10.1108/EEMCS-10-2022-0372

Emerald Publishing Limited

You do not currently have access to these teaching notes. Teaching notes are available for teaching faculty at subscribing institutions. Teaching notes accompany case studies with suggested learning objectives, classroom methods and potential assignment questions. They support dynamic classroom discussion to help develop student's analytical skills.

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How Zepto Delivers soooo fast ? Dark Store Case Study
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@ZeptoNow Story: Redefining Grocery market in India

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Zepto Business Model

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Presentation Transcript

CSI’s Business Model

Business Model Canvas

Business Model Analysis

RH Business Model

The Business Model

Our Business Model

Business Model (Template)

SI Business Model

Business model

Business Model

Business Model Innovation

Business Model Considerations

CENIC Business Model

Eliminate Zepto File Virus

Zepto Marketing Strategy 2024: A Case Study

Key Takeaways:

Zepto’s Shareholdings and Funding

Funding Utilization Breakdown

Zepto’s 10 Minute Delivery Strategy

Zepto’s Dark Store Business Model

Quick Deliveries and In-Store Pickup

Efficient Order Fulfillment Through AI-powered Tools

Zepto’s Marketing Mix

Zepto’s Marketing Strategy

10-Minute Delivery Strategy

Advertising and Branding Strategy

Social Media Meme Marketing

Customer Acquisition and Retention Strategy

Zepto’s Future Goals

Dark Store Expansion

Implementing Convenience Fees

Potential Public Listing

Challenges for Zepto

Customer Acquisition

Price Power Maintenance

Income Economies

Competitor Threats

Zepto’s Target Audience

Why Zepto Appeals to Young Adults and the Modern Generation

What is Zepto?

Editorial Team

Zepto Case Study | Delivering Groceries in 10 Mins

The Founders

Aadit Palicha

Kaivalya Vohra

Zepto – Startup Story

Zepto: Mission and Vision

Business Model and Revenue Model

In Conclusion

Waffle Bytes

Zepto Success Story | Business model and case study

About Zepto

Zepto Highlight

Zepto’s 10 Minute Delivery

Zepto Industry

Zepto Founders and Team

Addit Palicha

Kaivalya Vohra

Zepto Shareholdings

Zepto Starting Story

Zepto Mission and Vision

Zepto future goals

Zepto Challenges

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