TOPIC: NEW STARTUPS

INTRODUCING ZEPTO: THE NEW STARTUP IN QUICK COMMERCE

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 INDEX

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 BUSINESS INTRODUCTION

Zepto is an Indian quick-commerce company founded in 2020 by Aadit Palicha and Kaivalya Vohra.
Originally known as KiranaKart, it rebranded to Zepto in July 2021 and pioneered the concept of 10-
minute grocery deliveries using a network of dark stores. By 2023, Zepto had become India's first unicorn
startup in the quick-commerce space, valued at over $5 billion. The company operates over 250 dark
stores across multiple metropolitan areas and has introduced initiatives like Zepto Cafe for ready-to-eat
food and Zepto Bloom for farm produce distribution. Zepto has raised significant funding from prominent
investors and continues to be a major player in the Indian grocery delivery market.

Zepto is an innovative quick-commerce company that focuses on delivering groceries and everyday
essentials within a short time frame, typically within 10 minutes. It operates by leveraging a network of
dark stores, which are small warehouses strategically located to optimize delivery speed. The company
emphasizes convenience, speed, and reliability, aiming to provide a seamless and efficient shopping
experience for customers. Zepto's core values include customer satisfaction, technological innovation, and
operational efficiency, which drive its mission to transform the grocery delivery landscape in India.

Vision

• To make 10-minute delivery the new normal.

Mission

• Revolutionizing the way India shops by providing ultra-fast and hassle-free grocery delivery.

Objectives

• Expand Dark Store Network: Continuously increase the number of dark stores (micro-
warehouses) to ensure quick and efficient deliveries.
• Enhance Customer Experience: Focus on delivering a seamless and convenient shopping
experience through a user-friendly app and real-time tracking.
• Grow Product Range: Broaden the variety of products offered to meet diverse customer needs.
• Maintain Speed and Reliability: Uphold the promise of delivering groceries within 10 minutes
consistently.
• Innovate and Adapt: Stay ahead of market trends and continuously innovate to improve service
quality and operational efficiency.

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 BUSINESS ENVIROMENT ANALYSIS

Zepto Industry Background:

Zepto is a prominent player in the quick-commerce sector in India, delivering groceries and everyday
essentials within 10 minutes using a network of strategically located dark stores. Competing with major
rivals like Swiggy Instamart and Blinkit, Zepto has rapidly expanded since its founding in 2020, now
operating over 250 dark stores in multiple metropolitan areas. Its commitment to customer satisfaction,
technological innovation, and operational efficiency has driven its success, positioning Zepto as a key
innovator in the grocery delivery industry.

Zepto has rapidly grown since its founding in 2020, now operating over 250 dark stores across multiple
cities in India. It stands out with its key feature of delivering groceries in just 10 minutes, driven by a
network of strategically located dark stores.

Zepto’s Competitive Analysis:

Zepto faces competition from several key players in the quick-commerce sector in India:

• Blinkit (formerly Grofers): Similar to Zepto, Blinkit focuses on delivering groceries within
minutes using dark stores. It has a strong market presence and is backed by Zomato.
• Swiggy Instamart: Part of the Swiggy ecosystem, Instamart offers quick grocery deliveries
and has a wide user base
• BigBasket: One of the largest online grocery stores in India, BigBasket also offers quick
delivery services

Target Audience

• Zepto primarily targets urban consumers in India, including young professionals, students, and
families who value convenience and speed. These customers are typically tech-savvy and prefer
using digital platforms to save time.

Potential Customers

• Zepto's potential customers are those who frequently need quick grocery deliveries, such as busy
individuals, working parents, and people living in metropolitan areas where the demand for fast
delivery services is high.

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Assumptions about the 4 Ps

• Product: Zepto offers a wide range of grocery items, focusing on quality and freshness. The
company sources products from local farmers to ensure high standards.
• Price: Zepto adopts a competitive pricing strategy with dynamic pricing to attract customers and
maintain market share. Promotional offers and discounts are used to encourage repeat business.
• Place: Zepto operates through its mobile app, with strategically located dark stores to ensure
quick delivery. The app is designed for easy navigation and a seamless user experience.
• Promotion: Zepto uses digital marketing, social media, and influencer marketing to reach its
audience. The company also engages in meme marketing and out-of-home advertising to enhance
brand visibility

~TOTAL REVENUE OF ZEPTO FOR THE YEAR 2022 AND 2023

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 ZEPTO’S FEASIBILITY ANALYSIS

Marketing Objectives

• Increase Brand Awareness: Utilize digital marketing, social media, and influencer marketing to
reach a broader audience.
• Customer Acquisition: Implement referral programs and promotional offers to attract new
customers.
• Customer Retention: Enhance customer loyalty through personalized offers and excellent
customer service.

Marketing Strategies

• 10-Minute Delivery Promise: Highlight the unique selling proposition (USP) of delivering
groceries within 10 minutes.
• Digital Marketing: Leverage SEO, content marketing, and online advertising to drive traffic to
the app.
• Social Media Marketing: Engage with customers through social media platforms, meme
marketing, and influencer collaborations.
• Out-of-Home Advertising: Use billboards and other outdoor advertising to increase brand
visibility in key areas.

Zepto's operational plan focuses on establishing a network of strategically located dark stores to
minimize delivery times, leveraging advanced technology for order management and delivery
optimization, and maintaining high-quality customer service through effective workforce
management and quality control. By efficiently allocating budget, monitoring key performance
indicators, and collecting customer feedback, Zepto aims to ensure seamless operations, high
product quality, and exceptional customer satisfaction while upholding its promise of ultra-fast
10-minute deliveries.

Zepto's manufacturing plan involves transforming raw materials into finished grocery products through a
streamlined process. Here's a brief overview:

• Sourcing Raw Materials: Zepto sources high-quality raw materials, including fresh produce,
packaged goods, and household essentials, from reliable suppliers.
• Processing and Packaging: Raw materials are processed and packaged in Zepto's dark stores
(micro-warehouses) to ensure freshness and quality.
• Inventory Management: Advanced inventory management systems are used to maintain optimal
stock levels and minimize waste.

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 • Order Fulfilment: Orders are picked, packed, and prepared for delivery within the dark stores,
ensuring quick turnaround times.
• Delivery: The packed orders are delivered to customers within 10 minutes using a fleet of
delivery personnel and optimized delivery routes.

This efficient manufacturing and delivery process allows Zepto to provide a seamless and rapid grocery
shopping experience for its customers.

Management Summary:

Zepto's management, led by founders Aadit Palicha and Kaivalya Vohra, focuses on strategic growth,
technological innovation, customer satisfaction, operational efficiency, and financial planning, aiming to
cement its leadership in ultra-fast grocery delivery.

Financial Plan:

Zepto has rapidly grown since its founding in 2020, achieving a revenue of Rs 4,454 crore in FY24, a
120% increase from the previous year. The company has expanded its dark store network to over 550
locations, fulfilling more than 7,00,000 orders daily. Despite significant expenses, Zepto has improved its
operational efficiency, reducing its net loss1. Looking ahead, Zepto aims for an IPO within the next 12-24
months and plans to continue expanding its network and market presence

~ ROI OF ZEPTO IN YEARS 2021,2022,2023.

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CONCLUSION

In conclusion, Zepto, founded by Aadit Palicha and Kaivalya Vohra in 2020, has quickly established
itself as a leading innovator in India's quick-commerce sector. By rebranding from KiranaKart to Zepto
and introducing the groundbreaking concept of 10-minute grocery deliveries, the company has
significantly transformed the grocery delivery landscape. With a network of over 250 dark stores and
initiatives like Zepto Cafe and Zepto Bloom, Zepto has not only met the demand for speed and
convenience but also diversified its offerings to cater to a broader customer base. The company's
commitment to customer satisfaction, technological innovation, and operational efficiency has driven its
rapid growth, culminating in its valuation exceeding $5 billion by 2023, making it India's first unicorn in
the quick-commerce space.

Looking ahead, Zepto aims to maintain its leadership in the market by continuing to expand its dark store

network, enhancing customer experience, and broadening its product range. The company targets urban,

tech-savvy consumers who value convenience and speed, leveraging digital marketing and strategic

partnerships to increase brand awareness and customer acquisition. Despite significant operational costs,

Zepto has improved its efficiency and is on track for an IPO within the next 12-24 months. With a focus

on innovation and adaptation to market trends, Zepto is well-positioned to sustain its growth and continue

revolutionizing the way India shops for groceries and everyday essentials.