It is true that Zepto may not be the one that started the quick grocery delivery thing in India, but this is the brand that is setting the standards high these days. Like it has been just a few years of their launch, and they’re already known for their super quick 10-minute deliveries. And for those who don’t know it yet, well, Zepto is a grocery delivery platform that started out just in 2021. And if you’re particularly curious about Zepto’s business model or how Zepto makes money, then just keep on reading.
A Quick Peek at Zepto
First of all, Zepto is a new startup that was launched in Mumbai in July 2021 under the name KiranaKart. After a very short time, they changed their name to Zepto and relocated to Bengaluru. Two 16-year-old teenagers, Aadit Palicha and Kaivalya Vohra, are the masterminds behind this project, and they have attracted a lot of media attention with their large amounts of funding. As of 2025, Zepto’s worth was an amazing $5 billion. How about we go through their process to see how they pulled this off?
| Company / Brand Name | Zepto |
| Establishment Year | 2021 |
| Headquarters | Bengaluru, India |
| Founder / Owner | Aadit Palicha and Kaivalya Vohra |
| Industry | Quick-commerce / Online Grocery |
| Net Worth (Valuation, 2024) | US $5 billion |
| Total Revenue in 2024 | ₹4,454 crore |
How Does Zepto Deliver in Ten Minutes?
One of the main reasons for Zepto’s success is their “dark stores” concept. The dark stores are similar to small warehouses located in the middle of the busy residential areas. As of 2024, they have shops that total to 250 in ten major Indian cities, each of them serving customers within a two-kilometer radius. This is how they manage to keep everything really fast. And the great thing is that they are going to increase the number of these dark stores to 700 by March 2025.
How Zepto Makes Its Money
Well, what are the operating methods that Zepto employs in order to maintain their cash flow? They know several clever ways of doing it. Let’s just see that one by one.
1. Product Margin
The bulk of Zepto’s money is made from the profit they rack up on their sales. They essentially buy groceries and daily necessities in large quantities at wholesale rates, then keep them in their dark stores, and sell them to you at normal retail prices. The company is making a lot of money from the difference. Their strategy allowed Zepto to generate an operating revenue of ₹4,454 crore for the financial year 2023-24, which is more than twice the amount of the previous year!
2. Delivery and Surge Fees
Zepto is offering free deliveries for a large number of orders; however, if your order is less than a specified value or it is a peak period, they will charge you a delivery fee. These charges help cover the expenses of drivers and fuel, and also increase the average order value. The companies do not disclose these fees separately in their public filings because they are combined with the so-called “service income” category, but it is still a good way to manage operations.
3. Zepto Pass Subscription
In order to maintain customer loyalty, Zepto designed an innovative membership plan known as Zepto Pass. You are able to avail the unlimited free deliveries and some additional discounts for merely ₹19 to ₹99 in a month. More than four million individuals had registered for Zepto Pass by the beginning of 2025, thus giving Zepto a very reliable cash flow.
4. In-App Advertising
One of the main things brands look for is ways to attract the attention of consumers, and Zepto is one of the companies that can do this on their behalf with their app ads. Imagine the banner ads, promoted search results, or even a free sample of your products. This area of the company, known as “retail media,” is getting bigger very quickly. The ad business of Zepto achieved a yearly run rate of approximately ₹1,000 crores by December 2024.
5. Private-Label and Zepto Cafe
In addition, Zepto had their exclusive products, such as milk and bakery products, which have been a major source of their earnings. Besides that, they have introduced Zepto Café, a hot drinks and snack delivery service that promises ten-minute deliveries.
Unit Economics and Getting to Profit
Zepto’s 2024 financial report shows that the company is making a smaller loss than before. Their losses reduced to approximately 28% of the revenue, which was 63% the year before. That is quite a big step towards the right direction! They report that as of May 2024, around 75% of their dark stores were either raking in money or at least in a store-level break-even situation. Reduced delivery costs, larger orders, and their prosperous ad business are the factors that are making them close to the term of profitability.