Zepto Business Model Explained: How Does Zepto Make Money?

Groceries at your doorstep in just 10 minutes—that’s the promise of Zepto, one of India’s fastest quick-commerce grocery delivery apps. Urban life is fast, and people no longer have the patience to wait hours for groceries.

The Zepto app provides ultra-fast grocery delivery by combining speed, advanced technology, and convenience. Place an order and get groceries in just 10 minutes—no waiting, no delays. With smartphones and fast internet everywhere, traditional grocery delivery apps can’t keep up.

Zepto uses hyper-local dark stores, AI-powered logistics, and a seamless mobile app interface. This makes instant grocery delivery in India possible. Today, Zepto operates with 1,000+ stores and offers 135,000+ products, making it one of the most expansive quick-commerce players in India.

This blog explores the Zepto business model, founders’ vision, revenue streams, operational strategies, dark store network, funding milestones, and rapid growth. Last year, Zepto’s revenue surged from ₹4,454 crore to over ₹11,110 crore, showing its dominance in the Indian quick commerce market.

Whether you’re a consumer, entrepreneur, or investor, this guide reveals how Zepto is transforming grocery delivery in India.

Founders’ Origin Story

Founders and Inspiration

Zepto was founded by Aadit Palicha and Kaivalya Vohra, two Stanford University dropouts with a vision to change urban grocery shopping. During the COVID-19 lockdown, they observed significant inefficiencies in grocery delivery—delays, missing essentials, and inconvenient shopping experiences.

This insight led them to launch KiranaKart, a venture promising 45-minute grocery delivery. Although KiranaKart achieved moderate success, the founders realized that speed was the ultimate differentiator in urban grocery delivery.

Launch of Zepto

Learning from their early venture, Zepto was launched in July 2021 with a 10-minute delivery promise—a bold move in a market dominated by players offering 30–60 minute delivery windows. The name “Zepto” is inspired by a zeptosecond, one of the smallest units of time, symbolizing the startup’s commitment to speed and efficiency.

The platform targets urban, tech-savvy consumers who value speed, reliability, and convenience. It also provides brands and suppliers access to a high-frequency customer base, enabling better marketing and engagement.

How Zepto Works: The Dark-Store Engine

Zepto’s promise of 10-minute grocery delivery isn’t just marketing—it’s a carefully engineered system powered by dark stores. These are small, strategically located warehouses designed solely for rapid order fulfillment, without any in-store shopping for customers.

The Customer Journey (Order → Fulfillment → Delivery)

• Order: A customer opens the Zepto app, selects groceries, and places an order. The system immediately identifies the nearest dark store capable of fulfilling the request.
  
• Fulfillment: The dark store team springs into action. Every item is meticulously picked, packed, and sealed in under a minute, with over 7,000 products available. Optimized layouts reduce staff movement, enabling lightning-fast order prep.
  
• Delivery: Once packed, a rider collects the order and follows an AI-optimized route. Zepto’s delivery algorithm continuously monitors traffic and real-time conditions to ensure the package arrives at the customer’s doorstep in 10 minutes or less.
  

Why Dark Stores Work

• Proximity to Customers: Dark stores are placed within 2–3 km of densely populated urban areas, minimizing travel time.
  
• Optimized Inventory: Stock only high-demand items, reducing search time and ensuring popular products are always available.
  
• No Walk-In Customers: Unlike supermarkets, dark stores are built purely for speed, with layouts optimized for picking efficiency.
  
• Technology-Driven Efficiency: From AI-powered inventory management to predictive demand forecasting, every aspect is designed for speed.
  

This combination of location, technology, and streamlined operations allows Zepto to deliver groceries faster than any traditional model—making Zepto’s 10-minute delivery not just possible, but consistently reliable.

Zepto Business Model Canvas

Zepto operates on a Quick-Commerce (Q-Commerce) model, focusing on ultra-fast delivery, operational efficiency, and hyper-local supply chains.

1. Value Proposition

• 10-minute grocery delivery, setting a new benchmark.
  
• Instant convenience for urban consumers.
  
• Data-driven insights for brands targeting frequent shoppers.
  
• Predictive fulfillment ensures popular items are always in stock.
  

2. Customer Segments

• Urban, tech-savvy consumers with busy lifestyles.
  
• Last-minute shoppers needing essentials urgently.
  
• Brands & suppliers seeking targeted marketing opportunities.
  

3. Channels

• Mobile App: Browsing, ordering, and managing subscriptions.
  
• Delivery Network: Optimized riders for doorstep delivery.
  
• Digital Marketing: Social media campaigns, influencer collaborations, referral programs.
  
• Brand Promotions: In-app advertising, flash deals, co-branded campaigns.
  

4. Customer Relationships

• Personalized shopping via AI recommendations.
  
• Loyalty programs like Zepto Pass.
  
• In-app chat & call support.
  
• Push notifications and exclusive offers.
  

5. Revenue Streams

• Grocery & essentials sales.
  
• Delivery fees.
  
• In-app advertising & promotions.
  
• Zepto Cafe menu (ready-to-eat meals and beverages).
  
• Subscriptions like Zepto Pass and Zepto Daily.
  
• Zepto Atom data insights (analytics for brands).
  
• Electronics, beauty, and lifestyle products.
  

6. Key Resources

• 250+ dark stores in urban areas.
  
• AI logistics predicting demand & optimizing routes.
  
• Hyperlocal network enabling speed.
  
• Mobile app & analytics engine.
  
• Delivery fleet and workforce.
  

7. Key Activities

• Inventory management & dark store operations.
  
• Rapid order fulfillment in under 10 minutes.
  
• AI-powered predictive fulfillment.
  
• Customer engagement via marketing campaigns.
  
• Technology updates & analytics.
  

8. Key Partnerships

• Grocery brands & suppliers.
  
• Zepto Cafe & electronics partnerships.
  
• Delivery & logistics partners.
  
• Tech providers for Zepto Atom.
  
• Investors funding expansion.
  

9. Cost Structure

• Dark store operations.
  
• Delivery fleet salaries & incentives.
  
• Technology & AI system maintenance.
  
• Marketing & customer acquisition.
  
• Inventory procurement & warehousing.
  

This 9-pillar framework defines the Zepto business model.

Financial Performance & Funding

Zepto’s financial performance highlights its impressive growth trajectory in the Indian quick commerce space. In FY24, the company generated ₹4,454 crore in revenue, which skyrocketed to ₹11,110 crore in FY25, marking a staggering 150% year-over-year growth. 

As of August 2025, Zepto achieved a valuation of $5.9 billion, with projections indicating it could soon cross the $7 billion mark, making it one of the most valuable startups in India.

Funding has played a pivotal role in fueling Zepto’s rapid rise. To date, the company has raised more than $1.5 billion from investors like Y Combinator, Nexus Venture Partners, and General Catalyst.

Notably, the company has also made significant strides toward profitability, with 50–60% of its dark stores already EBITDA-positive. 

Competitive Landscape

Zepto faces stiff competition from players like Blinkit, Swiggy Instamart, and Amazon Fresh. Despite the rivalry, Zepto has carved out a strong position as the second-largest quick-commerce player in India. The company’s focus on predictive AI, geospatial analytics, and efficient Zepto dark stores ensures a superior customer experience.

This has positioned Zepto as a major force in the Indian quick commerce market, where speed and reliability are critical.

Marketing & Branding Playbook

Zepto’s marketing and branding strategy revolves around its core promise: groceries delivered in just 10 minutes. Its brand voice is youthful, tech-savvy, and highly relatable to urban millennials. Zepto leverages social media ads, influencer marketing, and targeted campaigns to boost brand awareness.

Billboards as Viral Weapons: Zepto transformed outdoor ads into viral moments. Their witty OOH copy—like the “From one Anand to another” campaign—sparked massive online chatter. By mixing humor and cultural references, Zepto made billboards a core part of its brand identity.

Creative Ad Campaigns: Zepto’s ads leaned heavily into relatability and humor. Notable ones include:

• Quirky late-night and snack-time billboard copy that became memes on Twitter and Instagram.
  
• Super Saver Mode campaign featuring Akshay Kumar & Jr. NTR, where humor and mass appeal positioned Zepto as affordable and fun.
  

Super Saver Mode: Beyond witty marketing, Zepto strategically introduced Super Saver Mode to attract price-conscious buyers. This positioned the brand not only as the fastest but also one of the most economical quick-commerce options, widening reach to middle-income households while improving retention.

Youth-Centric Branding: Zepto’s brand voice is playful, meme-driven, and tuned to Gen Z and millennials. Push notifications and social content often borrow from internet slang, ensuring high engagement.

Multi-Channel Execution:

• Mobile app is the core funnel.
  
• Instagram reels, YouTube shorts, and influencer collabs target high-frequency use cases (milk runs, game nights, unexpected guests).
  
• Billboards + digital = a hybrid strategy, ensuring both street-level recall and viral amplification online.
  

Referral Programs: Incentivizing customers to bring friends and family.

Customer Retention: Loyalty programs like Zepto Pass, along with personalized push notifications.

Brand Partnerships: Collaborating with FMCG brands for in-app promotions.

These efforts not only enhance visibility but also create stronger customer stickiness, ensuring repeat usage.

Zepto Revenue Model: How Does Zepto Make Money? 

Zepto generates revenue through multiple streams, balancing growth with operational efficiency:

• Grocery & Essentials Sales: The main income comes from selling groceries, fresh produce, dairy, snacks, and daily essentials via the app. Frequent, repeat purchases from urban consumers drive strong sales.
  
• Delivery Fees: Zepto charges a nominal fee per order. Premium plans, like Zepto Pass, offer free or discounted delivery, encouraging regular customers to subscribe.
  
• In-App Advertising & Promotions: Brands pay for product placements, flash deals, and co-branded campaigns within the app. Zepto uses consumer data to ensure these promotions reach the right audience, maximizing ROI for brands. Learn more: In-App Advertising Strategies for E-Commerce Apps.
  
• Subscription & Loyalty Programs: Zepto offers optional subscription plans and loyalty rewards. These programs encourage repeat purchases, provide perks such as faster delivery and discounts, and boost long-term customer retention.
  
• Data Insights for Brands: Zepto collects user behavior, purchase patterns, and preferences. This data is used to provide actionable insights to brands, helping them optimize marketing, inventory, and targeted promotions.
  

This diversified revenue model allows Zepto to grow quickly, manage operational costs, and maintain its 10-minute delivery promise, keeping it ahead in India’s competitive quick-commerce market.

Challenges & Risk Mitigation

While Zepto has seen rapid success, it faces several challenges:

• High operational costs: Maintaining dark stores and delivery fleets.
  
• Thin profit margins: Common in the grocery delivery business.
  
• Intense competition: Established rivals with deep pockets.
  
• Scaling challenges: Maintaining ultra-fast delivery while expanding to new geographies.
  

To address these, Zepto is investing in automation, optimizing inventory with AI, and leveraging partnerships to reduce costs.

Growth, Diversification & Future Outlook

Zepto’s expansion and Zepto growth strategy include entering Tier-2 and Tier-3 cities, thereby broadening its customer base. Beyond groceries, Zepto has also diversified into lifestyle products, electronics, beauty, and personal care.

A key part of its growth is Zepto Cafe menu, which offers ready-to-eat and ready-to-drink options to cater to changing consumer habits. Zepto is also exploring IPO opportunities, and its Zepto IPO plans are closely watched as the company aims to strengthen its position further in the Indian startup ecosystem.

Looking ahead, Zepto plans to:

• Expand into new product categories like electronics and lifestyle goods.
  
• Deepen its presence in Tier-2 and Tier-3 cities.
  
• Focus on technology upgrades and automation to further reduce costs.
  
• Move toward IPO readiness as part of its upcoming plans.
  

With a strong customer base, advanced AI systems, and growing revenue streams, the company is well-positioned to dominate the market. These initiatives make Zepto a benchmark for quick commerce app development in India.

Conclusion: Understanding the Zepto Business Model

Zepto’s rise from a lockdown experiment to a multi-billion-dollar company is nothing short of remarkable. With its focus on speed, efficiency, and innovation, the Zepto business model has redefined grocery delivery in India.

Its story serves as an inspiration for entrepreneurs and startups aiming to disrupt traditional markets through technology and customer-first thinking.

For businesses inspired by Zepto’s success and looking to build the next big thing in delivery, iCoderz offers expert solutions in grocery delivery app development. Our experience in creating scalable, high-performance on-demand applications can help bring your vision to life.

FAQs

1. What is Zepto, and how does it work?

Zepto is a quick-commerce platform delivering groceries and essentials in just 10 minutes using AI-powered logistics and Zepto dark stores.

2. Who are the Zepto founders?

Zepto was founded in July 2021 by Aadit Palicha and Kaivalya Vohra.

3. What is Zepto’s revenue in 2025?

In FY25, Zepto reported revenue of ₹11,110 crore. 

4. What is Zepto’s valuation in 2025?

As of August 2025, Zepto’s valuation stood at $5.9 billion. 

5. How does Zepto make money?

Zepto’s revenue streams include grocery sales, delivery fees, subscriptions like Zepto Daily, in-app ads, brand promotions, and Zepto Atom data insights.

6. What is Zepto Cafe?

Zepto Cafe is an in-app feature offering quick meals and beverages. 

7. What is Zepto Atom?

Zepto Atom is a data analytics subscription service that provides brands with hyperlocal insights into consumer behavior. 

8. What are Zepto’s IPO plans?

Zepto is preparing for an IPO to further fuel its expansion and strengthen its market dominance. 

9. Is Zepto profitable?

Yes, nearly 50–60% of Zepto’s dark stores are EBITDA-positive, showing strong signs of Zepto’s profitability.

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