{"id":7926,"date":"2025-01-13T05:18:21","date_gmt":"2025-01-13T05:18:21","guid":{"rendered":"https:\/\/deonde.co\/blog\/?p=7926"},"modified":"2026-03-18T09:15:36","modified_gmt":"2026-03-18T09:15:36","slug":"zepto-business-model","status":"publish","type":"post","link":"https:\/\/deonde.co\/blog\/zepto-business-model\/","title":{"rendered":"Zepto Business Model & Revenue Model: How does Zepto make money?"},"content":{"rendered":"

What\u2019s Zepto?<\/strong><\/h2>\n

Zepto<\/span><\/a>, an Indian online quick-commerce delivery business founded by Aadit Palicha and Kaivalya Vohra, is now competing against the likes of Blinkit<\/a>, Swiggy Instamart, Flipkart <\/span>Minutes<\/span>, and Amazon.<\/span><\/p>\n

This 10-minute grocery delivery app has raised approximately $450 million in a funding round in October 2025, led by the California Public Employees’ Retirement System (CalPERS).\u00a0\u00a0<\/span><\/p>\n

Today, Zepto is valued at $7 billion<\/a> and has become India\u2019s red-hot Q-commerce delivery app, now fully positioned for its upcoming IPO.<\/span><\/p>\n

Further boosting investor confidence, industry veterans Motilal Oswal and Raamdeo Agrawal personally invested <\/span>$100 million<\/a> in Zepto through a secondary transaction in May 2025.<\/span><\/p>\n

Signalling a firm step toward its Initial Public Offering (IPO), the unicorn has formally converted into a public company, changing its registered name from Zepto Private Limited to Zepto Limited.<\/span><\/p>\n

Zepto clinched the #1 spot on the 2025 LinkedIn Top Startups India list for the third year in a row. This achievement places them ahead of other rising stars like the cloud storage firm Lucidity and the food delivery platform Swish.<\/span><\/p>\n

To figure out why Zepto is so popular, let’s look at how they do business. In this blog, we\u2019ll dive deep into Zepto’s key partners, resources, value proposition, target audience, marketing strategy, and revenue streams.\u00a0<\/span><\/p>\n

So let\u2019s get started right away.<\/span><\/p>\n

Deep Dive into Zepto Business Model<\/strong><\/h2>\n

\"Zepto<\/p>\n

Zepto Key Partners<\/strong><\/h3>\n

Zepto, a popular quick-commerce platform, has formed collaborative relationships with various other businesses.\u00a0<\/span><\/p>\n

These partnerships are aimed at expanding Zepto’s product offerings, reaching new customer segments, and strengthening its market position. Here\u2019s a list of Zepto\u00a0<\/span><\/p>\n

Cantabil Retail India Limited<\/a><\/strong><\/p>\n

Zepto has partnered with Cantabil Retail India Limited, a leading apparel manufacturer and retailer, to offer fashion items for quick delivery.<\/p>\n

US Polo Assn<\/b><\/a><\/p>\n

Zepto and US Polo Assn have collaborated to offer premium fashion and lifestyle products, including classic polos and casual wear, with the promise of quick delivery.\u00a0<\/span><\/p>\n

Park+<\/b><\/a><\/p>\n

Zepto and Park+ have partnered to deliver car care products. These include cleaning kits, comfort accessories, and maintenance tools, across eight different locations in India.\u00a0<\/span><\/p>\n

Pescafresh<\/b><\/p>\n

Zepto and Pescafresh have partnered to offer seafood and meat products on the Zepto online grocery shopping app.\u00a0<\/span><\/p>\n

Goldman Sachs, Morgan Stanley, and Axis Capital<\/b><\/p>\n

As of 2024, the above-mentioned investment banks serve as a financial advisory council for Zepto.<\/span><\/p>\n

Reverie<\/b><\/a><\/p>\n

Zepto and Reverie have partnered to localize the app for delivery partners. The decision to localize the app stemmed from a commitment to empowering every delivery partner, regardless of their linguistic proficiency.\u00a0<\/span><\/p>\n

By offering the app in Hindi, Telugu, Kannada, Tamil, Marathi, and Bengali, Zepto aimed to remove language barriers and foster inclusivity.<\/span><\/p>\n

Key Resources<\/strong><\/h3>\n

A 10-min delivery app like Zepto<\/a> depends on a lot of human and tech resources as listed below:<\/span><\/p>\n

Delivery Partners<\/b>: Zepto partners with third-party delivery companies to ensure timely delivery of their grocery products. They manage this delivery network through real-time location tracking apps.\u00a0<\/span><\/p>\n

Vendor Partnerships<\/b>: Zepto partners with a variety of hyper-local vendors to offer a range of household and everyday-use products. To strengthen these ties, they use the ‘Harvest Hero’ app, which connects them directly with farmers and tracks real-time mandi prices for fresh produce.<\/span><\/p>\n

Consumers:<\/b> Zepto relies heavily on its users, not only for generating revenue but also for valuable customer data. Analyzing consumer shopping habits, reviews, and search data allows Zepto to refine its app features and services to better meet the needs of its customers.<\/span><\/p>\n

Dark Stores<\/b>: Zepto uses dark stores to store groceries and other items, which are then picked up by delivery drivers for customers.\u00a0<\/span><\/p>\n

To manage these operations efficiently, store partners rely on the ‘Zepto Franchise App.’ It helps them track real-time financials like Gross Sale Value (GSV) and other key metrics to optimize store performance.<\/span><\/p>\n

AI Algorithms<\/b><\/a>:<\/b> Zepto uses algorithms to calculate the fastest delivery routes, packaging workflows, and user personalization.\u00a0<\/span><\/p>\n

Zepto Value Proposition<\/strong><\/h3>\n

Zepto operates in the rapidly expanding Indian online grocery market.\u00a0<\/span><\/p>\n

Zepto has unveiled a significant upgrade to its brand intelligence suite, Zepto ATOM<\/strong>, with the launch of “Consumer Persona”<\/strong><\/a>. This upgrade allows brands to understand customer behavior and preferences beyond basic demographics, using Zepto’s first-party data and AI-powered insights<\/span><\/p>\n

India\u2019s on-demand grocery shopping market was valued at <\/span>US$7.6 billion<\/span><\/a> (Rs \u20b964,000 Cr) in 2025 and is expected to grow at a rate of 30% annually.\u00a0<\/span><\/p>\n

Recognizing this immense market potential, Zepto offers an unparalleled value proposition: <\/span>10-minute delivery.\u00a0<\/b><\/p>\n

This value proposition is true to its name, Zepto, which is an acronym for the factor of 10\u207b\u00b2\u00b9.\u00a0<\/span><\/p>\n

This promise of lightning-fast delivery service, combined with a diverse product range encompassing fresh farm vegetables and fruits, an array of groceries, dairy products, and much more, positions Zepto as a leading player in the quick-commerce sector.<\/span><\/p>\n

How Does Zepto Work?<\/strong><\/h3>\n

Zepto primarily offers its services through its mobile app (available on the App Store and Google Play), which is designed to make grocery ordering quick and easy for busy customers.\u00a0<\/span><\/p>\n

Once the customers place their orders on the app, Zepto dark stores are notified. These dark stores are strategically located in densely populated urban areas to ensure speedy and efficient order fulfillment.\u00a0<\/span><\/p>\n

As mentioned before, Zepto partners with various delivery services to ensure prompt delivery of orders to customers’ doorsteps.<\/span><\/p>\n

Zepto’s business strategy centers on customer convenience and satisfaction, with ultra-fast delivery as its cornerstone.\u00a0<\/span><\/p>\n

By connecting customers, vendors, and drivers through a single interface, Zepto simplifies and streamlines the online grocery shopping experience.\u00a0<\/span><\/p>\n

Zepto Business Model<\/strong><\/h3>\n

Zepto is in the buzz because of its bold 10-minute delivery promise. This promise is not just another marketing tactic, but a strategy\u2014-that is foundational to Zepto business model.\u00a0<\/span><\/p>\n

A well-connected network of dark stores or retail distribution centers supports Zepto grocery-delivery business model. These are usually located within a 3 km radius and are not open to the public.\u00a0<\/span><\/p>\n

By strategically investing in distribution warehouses in high-density neighborhoods, Zepto has managed to achieve 10-minute deliveries.\u00a0<\/span><\/p>\n

As soon as an app user places an order, the nearest Zepto outlet is notified. Simultaneously, a delivery driver is assigned the task of picking up the order and delivering it.\u00a0<\/span><\/p>\n

Because the dark stores are ergonomically designed, the packers can operate quickly and keep the orders ready even before the driver arrives for pickup.\u00a0<\/span><\/p>\n

The entire process of ordering from the Zepto app, packaging, and dispatch takes less than a minute.\u00a0<\/span><\/p>\n

Zepto Pricing Strategy<\/strong><\/h3>\n

Zepto adopts a strategic pricing approach to enhance its market position.\u00a0<\/span><\/p>\n

It offers competitive pricing to attract consumers and gain a sustainable share of the online grocery ordering market.\u00a0<\/span><\/p>\n

To boost profit margins, the company exercises dynamic pricing. Zepto adjusts its prices and delivery fees in response to consumer demand. As a result, consumers pay a higher fee when ordering during peak hours.\u00a0<\/span><\/p>\n

Moreover, Zepto also runs promotional offers which include discounts and coupons. This helps in attracting new consumers and getting repeat business.\u00a0<\/span><\/p>\n

Zepto Target Audience<\/strong><\/h3>\n

Zepto’s primary target audience is urbanites and corporates who lead busy lives and don\u2019t have the time to do grocery shopping.\u00a0<\/span><\/p>\n

College students, working professionals, and families that need everyday essentials quickly are all Zepto’s ideal consumers.\u00a0<\/span><\/p>\n

Because the Zepto business model involves a tech component, (i.e. using a smartphone and the Zepto app) it focuses on urban cities of India like Mumbai, Bangalore, Delhi, Ahmedabad, Chennai, Hyderabad, Gurgaon, Pune, and Noida.\u00a0<\/span><\/p>\n

Zepto Marketing Strategy<\/strong><\/h2>\n

You won’t believe how Zepto, a bootstrapped startup, used marketing to skyrocket to a $570 million valuation. Read on to uncover their ingenious marketing strategies.<\/span><\/p>\n

\"Zepto<\/p>\n

10-Mins Delivery Strategy:\u00a0<\/b><\/p>\n

The idea of online grocery delivery is not new. Startups like Dunzo and <\/span>Blinkit<\/span><\/a> are already providing these services.\u00a0<\/span><\/p>\n

The fact that distinguishes Zepto from all its competitors is its 10-minute delivery of groceries and other products.<\/span><\/p>\n

L&K Saatchi and Saatchi is an advertising agency that was assigned to advertise Zepto and build a strong brand image. The main theme of all the ads is to emphasize the 10-minute delivery of Zepto.<\/span><\/p>\n

Each Zepto ad is created to make the consumer feel how Zepto is capable of changing their daily grocery shopping habit.\u00a0<\/span><\/p>\n

Since advertising is the best way to market the product and build a strong brand image, Zepto has fully utilized the benefits of marketing.<\/span><\/p>\n

Social Media Marketing<\/b><\/p>\n

Social media has become a crucial platform for businesses to connect with their target audience.\u00a0<\/span><\/p>\n

Recognizing this, Zepto, like many brands, actively utilizes social media marketing, particularly through the use of memes.<\/span><\/p>\n

Meme marketing has gained significant traction due to its high shareability among users, allowing brands to organically reach a wider audience.\u00a0<\/span><\/p>\n

Zepto meme marketing has gained a lot of positive feedback from customers.\u00a0<\/span><\/p>\n

Along with meme marketing, they sometimes collaborate with famous social media influencers to make videos for them. This tactic helps to create a loyal fanbase and also helps the brand image flourish.<\/span><\/p>\n

Recently, Zepto partnered with Haldiram\u2019s for ‘Mithai Wars 2025’. This campaign turned Diwali into a fun election where users voted for their favorite sweets. It was a simple yet creative way to spark conversations and boost brand engagement during the festival.<\/span><\/p>\n

Digital Marketing<\/b><\/p>\n

Zepto uses digital marketing to reach busy customers with fast and targeted ads.<\/span><\/p>\n

They focus on social media platforms like Instagram and Facebook to promote quick delivery and special offers.<\/span><\/p>\n

Zepto also uses precision messaging or micro-moments to engage customers when they are likely to make a purchase. Through online campaigns, Zepto builds brand awareness and encourages customers to buy groceries from their mobile app.\u00a0<\/span><\/p>\n

Customer Acquisition and Retention Strategy<\/b><\/p>\n

Zepto recognizes that in this highly competitive market of on-demand ordering, discounts alone are not enough to attract and retain customers.\u00a0<\/span><\/p>\n

Consumers always want something new, and that\u2019s exactly where Zepto steps in.\u00a0<\/span><\/p>\n

Zepto offers discounts along with the promise of 10-minute delivery. Where no other player in the industry has managed to achieve this, Zepto’s high-speed delivery has become a great strategy for attracting new customers and retaining them.\u00a0<\/span><\/p>\n

Referral Programs<\/b><\/p>\n

Zepto’s referral program plays a crucial role in its successful marketing strategy. The program offers unique codes to its users for sharing, which incentivizes both existing and new users with rewards, such as discounts.\u00a0<\/span><\/p>\n

This helps in cost-effective customer acquisition and increases customer retention. The program’s seamless integration with social media, multiple reward options, and gamification elements make it a dynamic and impactful tool for Zepto’s growth and customer loyalty.<\/span><\/p>\n

Zepto Revenue Model: How Does Zepto Make Money?<\/strong><\/h2>\n

Commission on Sales<\/b><\/p>\n

Zepto earns a commission by marking up the price of products listed on its platform. This markup is competitive yet sufficient to cover operational costs and generate profit.<\/span><\/p>\n

Delivery Fees:<\/b><\/p>\n