SME Futures Editorial
Zepto, the rapid grocery delivery startup, has achieved a significant milestone by reaching a valuation of over $5 billion. Aadit Palicha, Co-Founder & CEO of Zepto, shared insights into the company’s rapid rise and its impact on the startup ecosystem at the NDTV World Summit 2024 – The India Century. Palicha also credited the Indian government’s supportive policies for fostering an environment where startups can thrive.
From college dropouts to pioneers of instant delivery
Reflecting on his entrepreneurial journey, Palicha admitted that his decision to drop out of college mirrors the stereotypical Silicon Valley story. He and co-founder Kaivalya Vohra spent a year deliberating before taking the leap.
“As kids, we loved coding and building small products. During the COVID-19 lockdown, when our plans to study in California were disrupted, we decided to use that time to experiment,” Palicha shared. They initially began by coordinating grocery deliveries via WhatsApp while stuck in Andheri, Mumbai. This experiment quickly gained traction and evolved into the first version of Zepto.
“The grocery delivery market was unreliable back then, with many offline stores closed. Our WhatsApp group turned out to be a game-changer,” Palicha noted. Vohra’s mother was initially skeptical of their venture, worried her son had been “brainwashed,” but within a year, Zepto was generating millions of dollars in revenue and expanding rapidly.
Building Zepto’s 10-minute delivery model
Palicha explained the motivation behind their pioneering 10-minute delivery concept: “Zepto is customer-centric. In India, people buy groceries hyper-locally and often multiple times a day.” The company piloted this model in Bandra, and the demand exceeded expectations. “The love and retention from customers were overwhelming. People were excited by the convenience,” Palicha said.
The company’s commitment to its gig workers has also been a core value. “In the past 36 months, we’ve provided employment to 50,000 delivery partners with consistent income. We also offer benefits like doctor consultations, vehicle repairs, insurance, and other services,” he shared. Zepto continually looks for ways to improve the work experience for delivery partners by incorporating their feedback.
Leveraging AI and expanding horizons
On the role of technology, Palicha emphasised how Zepto leverages data and AI to enhance the user experience. “We use search history to recommend personalised products, and AI helps us respond to customer queries in two seconds instead of minutes.” Zepto’s focus on operational excellence continues to drive its expansion, with plans to enter new cities soon.
Government support fuels startup growth
Palicha also acknowledged the Modi government’s contribution to the flourishing startup ecosystem. Speaking on the sidelines of the summit, he remarked, “This is India’s century. Thanks to the government’s infrastructure efforts, we are working to build impactful businesses that will employ thousands and contribute to the economy.”
He pointed out that India’s startup boom, particularly over the last decade, is the result of investments in digital infrastructure, such as the Unified Payments Interface (UPI). “Most of our transactions happen through UPI, which has significantly streamlined our operations,” he added.
Future of startups in India
Palicha expressed optimism about the future, noting the rise of high-quality companies in public markets. “We expect more capital and investments to flow into the next wave of startups, fueling innovation, value creation, and high-quality job opportunities,” he said.
He also stressed the importance of technology startups in driving economic growth. “We need more entrepreneurs to start tech companies in India. This will benefit everyone,” he concluded, adding that India is on track to become a global innovation hub over the next 20 to 25 years.
With Zepto’s impressive growth and the continuous evolution of India’s startup landscape, Palicha’s story embodies the spirit of entrepreneurship in the India of today—one where opportunity, technology, and ambition come together to create transformative businesses.
