SYMBIOSIS INTERNATIONAL DEEMED UNIVERSITY

The Case Study of Zepto- Founders Aadit Palicha, Kaivalya Vohra

IICT

Submitted by

AYUSH RAJ PRN 21010324033

Class: BBA.LLB Division: C

In MARCH, 2024

Under the guidance of

Mr. Rupesh Rajak

Assistant Professor at

Symbiosis Law School, Hyderabad.

Case Study of Zepto- Founders Aadit Palicha, Kaivalya Vohra

Introduction
Pandemic has changed the way how people used to live. Nowadays, most people prefer to get
food and groceries from the convenience of their home, so going out to buy goods after hours
of examination is no more common. Yes, people no longer leave the house and stand in queue
for a long time. The main dilemma customers have, though, is choose which grocery delivery
app to use. BigBasket, BlinkIt, and Zepto are a few examples of well-known apps with
distinct functions. Different groups of individuals use things according to their convenience
and needs since they operate differently.

For individuals seeking swift grocery deliveries, especially those placing last-minute orders,
Zepto emerges as the ideal app. Based in Mumbai, Zepto operates as a food delivery service,
ensuring customers receive their orders within a remarkable 10-minute timeframe. This rapid
service is facilitated through the utilization of dark stores and the PPB approach. With the
Zepto app, you can order groceries and have them delivered in ten minutes. Zepto provides
thousands of popular items, including fresh produce from farms, dairy goods, groceries, and
more, at the lowest costs. About ten minutes or so, a Zeptonian Rider will arrive at the door.
In just 11 months, Zepto has experienced a 200% price increase and is growing at a rate of
60% client retention.

Two 19-year-old pals, Kaivalya Vohra (CTO) and Aadit Palicha (CEO) founded Zepto in
April 2021. Despite being accepted to Stanford University, where they were expected to
pursue a bachelor's degree in computer science, they chose to build Zepto instead. They
launched "Kirana Mart," a supermart delivery company that was akin to Grofers and Big
Basket, earlier in September 2020. Nonetheless, it was widely recognised as Zepto up until
January 2021.

Zepto is a platform that aims to transform the supermarket delivery and sales industry by
offering 10-minute food deliveries instead of just another grocery delivery app. Customers
may easily purchase more than 5000 products with Zepto's 10-minute e-grocery delivery app,
and they can have them delivered right to their door.

Zepto entered Unicorn club in the year 2023

Zepto - Company Highlights

STARTUP NAME ZEPTO

Legal Name “KiranaKart Technologies Private Limited”

Headquarters “Mumbai, Maharashtra, India”

Industry “Delivery Service, Grocery Delivery, Quick Commerce”

Founders “Aadit Palicha, Kaivalya Vohra”

Founded “2021”

Valuation “$1.4 billion (August 2023)”

Website “www.zeptonow.com”
About Zepto

Zepto is a “Mumbai-based” startup that offers 10-minute grocery delivery services. Aadit
Palicha and Kaivalya Vohra founded Zepto to provide customers with lightning-fast shopping
delivery. Zepto is praised for his ability to supply groceries before the start of the year. In
2021, it collaborated with more than 86 dark store owners throughout thirteen regions,
resulting in more than one million deliveries. Zepto uses its network of "cloud shops," or
micro-warehouses, to quickly fulfil orders. Zepto's business secret is its ability to regularly
provide a wide selection of goods for delivery in less than 10 minutes. It's the foundation of
everything the business does, which explains how they've expanded so fast while retaining a
remarkably high level of customer loyalty.

With more than a thousand employees throughout several cities, Zepto offers 10-minute
delivery of over 5,000 items, including fresh vegetables, everyday necessities, health care
items, and more. The company is revolutionising the grocery market in India by employing
cutting-edge technologies and efficient delivery centres. Zepto's creative approach positions it
as a leader in the grocery delivery business, capitalising on the growing need for speedier
delivery services in India, as fast commerce continues to increase.

How does Zepto Deliver in 10 minutes?

Let's explore how Zepto completes orders in less than ten minutes. Dark stores are becoming
a common feature of many grocery delivery services in the modern era. One cannot do away
with these mini-warehouses since they are able to serve every customer within a three-
kilometre radius. Zepto delivery is not an anomaly to this pattern either. In addition to dark
storefronts, Zepto uses a unique product called Locus. This excellent system keeps track of
the geostatistical data of its clients, the dynamics of traffic, and the estimated time needed for
last-mile deliveries. Zepto then uses the information to determine whether or not to construct
a new dark store at a given location. Let's now briefly discuss Locus. This artificial
intelligence programme makes use of the Google Application Programming Interface to
display all pertinent data on the dashboard of the Zepto programme. Thus, Zepto's
performance is largely dependent on technology and the effectiveness of distribution agents.
Zepto's delivery in less than ten minutes was made possible in part by the PPB formula.
Zepto says that the dark store model is successful because of this formula.
Picking

The Zepto stores all finish this step quickly. Each employee working in a dark store has a
tablet, and orders are placed through a central hub. The order travels from this central point to
the dark store, where the staff members view it on their tablets. Additionally, the tablet
indicates which item is on which shelf.

Packing

In this stage, staff members gather the relevant items and quickly pack them.

Bagging

As soon as the agents receive the order, they must leave the warehouse. Zepto is given a
sixty-second head start in the three phases of selecting, packing, and bagging.

About the Industry

The Indian online grocery market reached a valuation of $6.8 billion in 2022, according to
IMARC Group's analysis. The market is anticipated to grow rapidly in the next years and is
projected to reach $37.0 billion by 2028. This growth trajectory indicates that the compound
annual growth rate (CAGR) between 2023 and 2028 will be an impressive 31.3%. A tech-
savvy generation that wants to make purchases online, changing consumer preferences, and
increased urbanisation have all contributed to the sector's rise in popularity in recent years.

RedSeer projects that India's e-commerce market would develop at an astonishing rate,
multiplying 10–15 times by 2025 to reach a market size of close to $5.5 billion. It is
anticipated that this significant expansion will outpace other economies, like as China, in
terms of the rapid adoption of commerce.

With their daily schedules becoming more hectic and their level of living rising, more and
more people are turning to handy online grocery buying platforms rather than visiting their
neighbourhood stores. The COVID-19 pandemic made it clear how popular online grocery
delivery has become. Due of social distancing restrictions, grocery shopping is being done
online, which is safer in addition to being more convenient for consumers.
Zepto - Founders and Team

Aadit Palicha and Kaivalya Vohra, two 19-year-old childhood friends, founded Zepto after
leaving Stanford University's prestigious computer science department to start a business in
their home country of India. April 2021 marked the start of Zepto's operations.

Aadit Palicha

Aadit Palicha is the CEO and co-founder of Zepto. He was also the CEO and founder of
KiranaKart. After receiving an IB diploma from GEMS Education in Mathematics and
Computer Science, Palicha continued on to Stanford University to pursue a Bachelor's degree
in computer science. But he quit the programme in the middle to launch his own company.
Following completion of Y Combinator Grade: W21, Aadit started working at PryvaSee as a
Project Lead. GoPool, Aadit Palicha's first business, was started at the age of 17. He left the
same in April 2020 and founded Zepto after starting KiranaKart.

Kaivalya Vohra

Kaivalya Vohra is the CTO and co-founder of Zepto. He was also the CTO and founder of
KiranaKart. Like Aadit, he enrolled at Stanford University to pursue a computer science
degree, but he eventually dropped out. Apart from Aadit, Kaivalya participated in Y
Combinator.
Factors motivated to become entrepreneur

Many of us have "startup ideas," but not even the most creative people can pull them off.
Palicha and Vohra enrolled in Stanford to study computer science, but they later dropped out
to focus on their business ventures. Zepto began during the Covid-19 outbreak in the privacy
of their own houses. Due to a growth in demand for delivery services, groceries and other
necessities would arrive in a few days, providing time for timely delivery. Consequently,
Zepto was created utilising all of this information. These youths collaborated closely on a
number of projects, including as a kid-friendly ride-hailing business, until they were
inadvertently confined in their Mumbai homes because of Covid regulations. Grocery
distribution, which local authorities deemed significant, continued to be permitted across the
majority of the nation as the virus spread, but the two found it increasingly difficult to gather
their supplies as the illness grew worse. Zepto is the centre of attention, while KiranaKart,
Palicha and Vohra's first venture, did not have the same degree of success. Zepto, on the other
hand, finds inspiration in KiranaKart. KiranaKart was a grocery delivery service, as its name
would imply. It had contracts with Kirana sellers guaranteeing grocery delivery in 45 minutes
or less. A $730,000 pre-seed investment was spearheaded by Global Founders Capital, 2 AM
Ventures, Contrary Capital, and angel investors. Initially, Vohra and Palicha planned to
supply the first 1.5 lakh orders for a cost of one rupee.

Problems faced by the entrepreneurs in the initial stages

While e-commerce was booming, there were several difficulties in the last-mile delivery
market. As companies tried to streamline their logistics processes, customers requested
deliveries that be made faster and with greater reliability. Zepto saw a chance to close this
gap after identifying it. The road for ZEPTO hasn't been easy, despite its early success. Its
current plight is the result of several obstacles. The primary reasons behind ZEPTO's
difficulties are listed below.

 Cost and Operational Complexity

Quick-commerce necessitates a special, intricate logistical configuration that can
allow for incredibly quick deliveries. This entails keeping a sizable product inventory
and setting up multiple micro-fulfilment centres near customers. Such infrastructure
has substantial intrinsic costs of operation and upkeep. Furthermore, the benefits of
 scale are frequently offset by the higher expense of prompt deliveries, creating an
unviable business model.
 Market Acceptance
Although the model offers the convenience of extremely quick deliveries, there hasn't
been much market appeal in India. Many customers are more cost conscious and are
prepared to wait longer for deliveries in exchange for cheaper costs. Due to ZEPTO's
high operating costs and business model, prices had to rise, which turned off a sizable
portion of potential customers.

 Regulatory Obstacles
For e-commerce enterprises operating in India, the regulatory landscape has presented
difficulties. Difficulties have arisen with regard to FDI regulations, GST, data privacy,
and other issues. ZEPTO has experienced significant expenses and operational
challenges as a result of navigating these regulatory constraints.

 Strict Competition
There has been an increase in competition in India's quick-commerce market,
including well-known e-commerce behemoths attempting to enter the fast delivery
market. With their large budgets and abundant resources, these rivals represent a
serious danger to upstarts such as ZEPTO.

 Retainers
For Zepto, acquiring new clients and keeping the ones they already had was
somewhat difficult. The existence of multiple such organisations with significant
retainers is the cause of this challenge.

 Price Power Maintenance

Zepto is well-known for its fast deliveries, however if no delivery fees are charged,
these deliveries may be costly. Therefore, maintaining low costs while offering fast
speed has proven to be difficult. It necessitates significant capital and cash flow for
Zepto
 Income economies
 Zepto also faced difficulties because its daily earnings were lower than those of its
rivals, Big Basket, Blinkit, and Swiggy. Furthermore, these competitors received more
investment and had more money.

How Zepto tackled the problems

Zepto introduced a smart, AI-powered logistics technology that interacted with e-commerce
websites with ease. This is how it transpired:

Smart Routing Algorithms: Delivery times and expenses were decreased by using
Zepto's platform's advanced algorithms to optimise delivery routes.

Real-time Tracking: In order to increase transparency and alleviate anxiety,

customers may follow their orders in real time.

Predictive Analytics: Zepto used data analysis to anticipate peak delivery hours and
maximise manpower and resource allocation.

Sustainability Initiatives: Zepto embraced sustainability by providing eco-friendly

delivery options that appealed to customers who cared about the environment.

Results
Zepto had a profoundly changing effect. When e-commerce companies used the
platform, they encountered:

 30% Quicker Delivery Times: Quicker delivery pleased clients and increased
revenue.
 20% Cost Savings: Resource allocation and route optimisation lowered operating
expenses.
 Enhanced customer Loyalty: Sustainable options and real-time tracking improve
client happiness and loyalty.
 Market Expansion: Zepto quickly expanded into other sectors and industries as a
result of its success.

Key Takeaways
  Innovation is Key: Zepto's success was fueled by its dedication to innovation in
logistics technology, which distinguished it from rivals.
 Approach of Customer-Centric: For entrepreneurs hoping to upend existing sectors,
identifying and resolving client problems is crucial.
 Sustainability Matters: Sustainability initiatives can make a big difference in today's
environmentally sensitive market.

Characteristics of the founders of Zepto which made Zepto successful

A startup's founder plays a crucial influence in determining its course and level of success.
The company's founders are its main motivators because they bring the vision, initiative, and
tenacity needed to overcome the difficulties of becoming an entrepreneur. The identity and
direction of the startup are greatly influenced by their capacity to motivate a team, make
critical decisions, and explain a compelling vision. Bringing a distinct enthusiasm to their
concept, founders frequently act as a spark for creativity and fortitude in the face of difficulty.
Their culture of risk-taking, inventiveness, and problem-solving is shaped by their
entrepreneurial spirit, which also sets the tone for the organisation. In the end, the vision,
commitment, and leadership of the entrepreneur are key components that greatly influence a
startup's capacity to succeed and endure. Few characteristics of founders of Zepto that made
Zepto a success:

 Educational Background: The founders of Zepto Aadit, Kaivalya. Aadit, who went on
to pursue a bachelor's degree in computer science at Stanford University after
receiving an IB diploma in mathematics and computer science from GEMS
Education, have a good educational background. Midway through the programme, he
quit to launch his company. Aadit started working as a Project Lead at PryvaSee after
completing Y Combinator Grade: W21. At the age of seventeen, Aadit Palicha
founded GoPool, his first business. He left the same in April 2020 after establishing
KiranaKart and launched Zepto. Talking about Kaivalya, he also attended Stanford to
obtain a bachelor's degree in computer science. After graduating, he and Adit joined Y
Combinator. The two founders had a long history in technology and were driven
individuals with a strong sense of purpose.
 Visionary Thinking: The founders of Zepto, known for their innovative ideas, foresaw
changing consumer trends in addition to seeing the urgent need for effective last-mile
 delivery. Their insight went beyond what the current industry needed, which helped
Zepto establish a reputation as a progressive answer in the rapidly evolving e-
commerce and on-demand service sectors.
 Adaptability and Market Insight: Within the rapidly evolving technology sector, the
Zepto founders exhibited remarkable flexibility. Their keen understanding of the
market allowed them to change course and adopt cutting-edge technologies that
matched Zepto's primary objective. By remaining aware of market developments and
consumer inclinations, they positioned Zepto as a flexible company able to adapt to
changing needs.
 Risk-taking and Strategic Decision-making: The creators of Zepto demonstrated a
measured approach to taking risks inside the cutthroat startup scene. They made
calculated decisions early on to build a strong infrastructure and invest in cutting-edge
logistics technology. These gambles weren't merely audacious actions; they were a
part of a well-thought-out plan that kept Zepto competitive, nimble, and responsive.
 Passion for Efficiency and Customer Satisfaction: Zepto's founders were fervent
supporters of effectiveness and client happiness in addition to being successful
businesspeople. Their thorough attention to optimising each step of the delivery
process was a manifestation of their devotion. Their dedication to quality boosted
Zepto's reputation for dependability and client satisfaction, from using data analytics
to enhance route planning to introducing consumer-centric services.
 Innovative Solutions and Tech Integration: The founders of Zepto led the way in
innovation for the on-demand delivery market. The smooth integration of cutting-
edge technologies demonstrated their dedication to provide innovative solutions.
Incorporating AI-driven algorithms for route optimisation, real-time tracking features,
and intelligent logistics solutions allowed Zepto to become a tech-driven market
leader and streamline operations while also setting new industry standards.

These nuanced perspectives offer a deeper insight of the founders of Zepto's entrepreneurial
path, demonstrating their capacity to foresee the future, embrace innovation, adjust to change,
prioritise customer pleasure, and make strategic decisions in order to lead their firm to
success.

How the founders of Zepto improved/built the organization

Zepto's success in the ever-changing on-demand services market is closely linked to the
founders' innovative ideas. These executives showed a deep grasp of the industry and a strong
desire to transform last-mile delivery services from the company's founding. Examining
Zepto's development path reveals that its founders were instrumental in creating not only a
business but also a creative force in the on-demand delivery industry. Zepto grew as an
organisation due to its strategic thinking, hands-on attitude, and dedication to client
satisfaction. Let's examine the crucial actions that the founders took to build and grow this
profitable business.

 Vision and Mission Definition: Zepto's founders started by outlining a compelling

goal and vision. This required not just determining the current demands of the market
but also predicting how on-demand delivery services will develop in the future. Their
goal served as a guide for the expansion and improvement of the company.
 Strategic Planning: At Zepto, strategic planning included a detailed examination of the
market, competitors, and any obstacles. The organization's founders outlined tactics
that capitalised on its strengths and addressed its possible vulnerabilities in order to
develop both short- and long-term goals.
 Team Formation: The founders of Zepto formed their teams actively. They looked for
people who shared their passion for the company's objective in addition to having the
requisite skills and knowledge. This strategy aided in creating a motivated and
cohesive team.
 Customer-Centric Approach: The founders prioritise learning about the wants and
needs of their customers. To improve the user experience, they adopt a customer-
centric strategy, incorporating feedback and making ongoing enhancements.
 Company Culture Establishment: The company's culture is actively shaped by its
founders, who also create an atmosphere that supports creativity, teamwork, and a
common dedication to the company's objectives.
 Technology Integration: Technology is essential to Zepto's business operations. The
founders make sure that cutting-edge technologies, like real-time tracking and AI-
driven route optimisation, were seamlessly integrated to improve the efficacy and
efficiency of their delivery services.
 Marketing and Branding: The founders recognised the value of strong branding and
marketing. Zepto's marketing approach sought to develop a brand identity that
 connected with their target demographic and fostered loyalty in addition to promoting
the services.
 Resource Allocation and Financial Management: For the creators of Zepto, effective
resource allocation and financial management were top considerations. During the
company's many stages of expansion, they made well-informed judgements about
budgeting, funding sources, and resource distribution to maintain its financial
stability.
 Scaling and Expansion: The founders of Zepto made deliberate plans for operational
scaling and future growth as the company evolved. To take advantage of new
prospects, this entailed evaluating the model's scalability, forming strategic alliances,
and thinking about expanding geographically or offering new services.

The founders' strategic vision, adaptability, and leadership are evident at every step of Zepto's
organisational development process, demonstrating how their hands-on style aided in the
company's growth and sustainability.

Conclusion

Zepto is a monument to the strength of innovation, customer-centricity, and sustainability—

its path from a visionary startup to a disruptive force in the logistics sector. Zepto changed
last-mile delivery and opened up new opportunities for companies and customers by using
cutting-edge technology to fill a vital gap in the market. This Zepto business case study is a
great resource for entrepreneurs and startups hoping to build a name for themselves in the
fast-paced worlds of logistics and technology. It emphasises how crucial it is to welcome
change, maintain customer focus, and pursue innovation with unwavering zeal in order to
succeed.

Dark stores are one aspect of the Zepto app's future that will be necessary for this service. In
order to boost the volume of orders, Zepto also plans to open more dark storefronts. Zepto
Delivery also plans to start charging convenience fees as soon as it manages to hold onto a
sizable clientele. To claim that Zepto won't encounter any obstacles on its path to success
would be foolish. The youthful creators of this business, though, are renowned for handling
them gracefully.