The Story Behind Zepto: How Two

Young Founders Revolutionized Quick

Zepto was founded by Aadit Palicha and Kaivalya Vohra, two young entrepreneurs who,
despite their age, have made a significant mark in India’s quick-commerce industry. Aadit
Palicha, a Stanford dropout, teamed up with his close friend Kaivalya, who also dropped out
of Stanford to pursue their entrepreneurial dreams. Both were originally studying in the
United States when they realized the problems with grocery delivery during the COVID-19
lockdown in 2020. Frustrated by the slow and unreliable service of existing players, they
saw a huge opportunity to build a more efficient model.

Despite being in their early twenties, Aadit and Kaivalya demonstrated exceptional vision,
technical acumen, and leadership, driving Zepto from a startup to a billion-dollar company.
Their journey has inspired many aspiring entrepreneurs, proving that even young founders
can scale innovative businesses quickly.

Why They Started Zepto

The idea behind Zepto was born out of personal frustration during the COVID-19 lockdown
in 2020. Both Aadit and Kaivalya were back in Mumbai from Stanford and found themselves
struggling to get basic groceries delivered. Orders were often delayed, incomplete, or
canceled altogether. These everyday inconveniences made them realize how broken the
grocery delivery experience was in India. Rather than just complaining, they saw a business
opportunity.

Their first venture was KiranaKart, a service aimed at delivering groceries in under 45
minutes from local kirana stores. While this model solved some problems, it also exposed
the limits of relying on third-party stores—issues with inventory accuracy, delays, and
inconsistent service were hard to control. This learning led to the pivot: Zepto, a platform
they could fully control end-to-end, including inventory, warehousing, and delivery.

The Problems They Faced Initially

Launching a startup is always tough, and for two teenagers with a radical idea, the
challenges were multiplied:
1. Skepticism Around 10-Minute Delivery: The idea of groceries in 10 minutes was met with
disbelief. Critics questioned whether it was safe, necessary, or even logistically possible.

2. Lack of Infrastructure: At the beginning, Zepto didn’t have dark stores, delivery fleets, or
backend systems. Everything had to be built from scratch.

3. Operational Chaos: In the early days, Aadit handled customer support personally. There
were frequent delays, order mistakes, and unhappy users.

4. Hiring Challenges: As very young founders, it was tough for Aadit and Kaivalya to attract
experienced talent in tech, operations, and logistics.

5. Managing Cash Burn: Quick-commerce requires heavy upfront investment. Balancing fast
growth with good unit economics was a constant struggle.

6. Regulatory and Public Concerns: The promise of 10-minute delivery raised safety
concerns about delivery riders speeding, leading to scrutiny from the media and authorities.

How They Overcame the Problems

1. Proving the Model: They started in small neighborhoods to test and refine their system.
By achieving consistently fast deliveries, they converted skeptics into believers.

2. Dark Stores: Zepto’s biggest innovation was its network of dark stores—mini warehouses
that serve only online orders. These are located in dense urban areas, reducing delivery
distance and time.

3. Tech-Driven Operations: Zepto built a robust backend to manage inventory, optimize

4. Operational Rigor: They introduced SOPs (standard operating procedures) for picking,
packing, and dispatch. Custom dashboards allowed real-time performance tracking across
all operations.

5. Team Building: The founders leveraged their YC (Y Combinator) network and early
traction to attract talent from top companies like Flipkart, Swiggy, and Amazon.

6. Cash Management: Zepto prioritized cities and neighborhoods with strong demand to
scale profitably. They also focused on high-margin categories to improve overall
profitability.
7. Safety First Policy: Zepto rolled out policies ensuring no penalties or incentives for
delivery speed. Riders were trained and routes optimized to maintain both speed and
safety.

Why They Entered This Segment

The quick-commerce segment wasn’t just a random pick. Aadit and Kaivalya chose it for
several smart reasons:

1. Real Problem to Solve: The grocery delivery experience was broken—slow, unreliable,
and inconsistent. They experienced it first-hand and saw a huge market gap.

2. Massive Market: Groceries are a daily need with massive demand. Even a small slice of
this market means huge scale and recurring revenue.

3. Low Competition for Speed: No existing player at the time was offering truly fast, reliable
service. This gave Zepto a unique value proposition.

4. Behavioral Shift: The pandemic accelerated digital adoption. People became more open to
buying groceries online, creating a perfect launch environment.

5. Tech-Driven Differentiation: Coming from a strong tech background, the founders

Zepto’s Tech & Dark Store Advantage

Zepto's operations are powered by a tightly integrated system of dark stores and advanced
technology. Here's how it all works:

1. Dark Stores

- Strategic Locations: These stores are placed in high-density urban zones to keep delivery
times under 10 minutes.
- Efficient Layouts: Items are arranged to enable fast picking. Orders are packed in under 60
seconds.
- Controlled Inventory: Because Zepto owns the store, they have full visibility into stock
levels, minimizing order errors.

2. Tech Stack

- Route Optimization: Uses real-time traffic data to assign the best delivery rider and route.
- Demand Forecasting: Predicts what items will be in demand in each location and stocks
accordingly.
- Order Batching: Groups nearby orders to increase delivery efficiency without affecting
speed.
- Live Tracking: Customers can see real-time updates of their order, adding transparency
and trust.

3. Command Center

- Central Control: A live dashboard monitors operations across all dark stores and delivery
zones.
- Issue Resolution: If a delay or stockout occurs, systems automatically reroute or update
the customer.

4. Rider Support

- App Integration: Riders use an app that gives them optimized routes and real-time
updates.
- Safety-First Design: No delivery speed targets are enforced, encouraging safe and efficient
delivery instead of reckless behavior.

Name- Siddharth Singh