By Abhay Ray 
Introduction
If it comes to 10 Minute Delivery, then Zepto is definitely mentioned. Zepto is a fast-growing quick-grocery delivery startup in India. This startup was planning to bring IPO for a long time, but recently it has postponed the plan to bring IPO in 2025. In the last few days, legal action has also been taken against Zepto by the FDA. Raids have been conducted on some dark stores of the company. At the same time, investigation is also being done against the company in Maharashtra. In such a situation, a big question arises in everyone’s mind that what is the business model of Zepto and in what ways does the company earn money. Let us know
What’s Zepto ?
Zepto, an Indian online grocery delivery startup, founded in 2021 by Aadit Palicha and Kaivalya Vohra, is now competing against the likes of Swiggy, Flipkart, and Amazon.
This 10-minute grocery delivery app has raised $100 million in a funding round led by Y Combinator. Today, Zepto is valued at $570 million and has become India’s red-hot Q-commerce delivery app.
Zepto Marketing Strategy
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.
10-Mins Delivery Strategy – The idea of online grocery delivery is not new. Startups like Dunzo and Blinkit are already providing these services. The fact that distinguishes Zepto from all its competitors is its 10-minute delivery of groceries and other products.
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. Each Zepto ad is created to make the consumer feel how Zepto is capable of changing their daily grocery shopping habit. Since advertising is the best way to market the product and build a strong brand image, Zepto has fully utilized the benefits of marketing.
Social Media Marketing – Social media has become a crucial platform for businesses to connect with their target audience. Recognizing this, Zepto, like many brands, actively utilizes social media marketing, particularly through the use of memes. Meme marketing has gained significant traction due to its high shareability among users, allowing brands to organically reach a wider audience. Zepto meme marketing has gained a lot of positive feedback from customers. 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.
Digital Marketing – Zepto uses digital marketing to reach busy customers with fast and targeted ads. They focus on social media platforms like Instagram and Facebook to promote quick delivery and special offers.
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.
Customer Acquisition and Retention Strategy – Zepto recognizes that in this highly competitive market of on-demand ordering, discounts alone are not enough to attract and retain customers. Consumers always want something new, and that’s exactly where Zepto steps in.
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.
Referral Programs – 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.
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.
Zepto Business Model
The “dark store model” serves as the foundation for Zepto’s business model. This involves setting up delivery-only warehouse-style stores in residential regions. The shops sell a variety of products, and the sole way for buyers to place orders is through the Zepto India website or app. Across multiple regions, Zepto now has more than eighty-six dark storefronts. Dark businesses are great for quick shipping, but they may crash under heavy traffic. However, Zepto created an AI-driven system to assist with selecting, packing, and shipping to avoid sacrificing quality or service. Zepto can provide an extensive product line at rock-bottom prices because of this technology, which guarantees a seamless transition from choosing to packaging to delivery.
Zepto India can provide a fast delivery service thanks to the convenience of having outlets close to customers’ homes, which is an advantage of the Zepto business model. The elimination of the necessity for employees to utilize the store also allows the company to run with a reduced headcount.
How Zepto Makes Money : Zepto Revenue Model
A little commission is charged for each order placed using the Zepto Grocery app in India. Helping to pay the costs of running the app and ensuring that consumers have a great experience, this commission is usually 2-3% of the total order amount. With almost $1.3 billion raised across eight rounds, Zepto is certainly a no-money lightweight, making it the first unicorn startup of 2023.
In recent times, the Zepto business model has experienced tremendous expansion. Their incomes increased by 800% while their burn rate per order reduced by 5%. The reason for this rise is that Zepto boasts a 50% growth rate per month.
Here’s an easy-to-understand version of Zepto’s revenue model :
Sales of Products: Zepto makes money by selling groceries, home goods, and personal care items on its website. They buy products from local suppliers and brands, keeping prices low. Sometimes, they charge a little more for certain items compared to regular stores, which helps boost revenue.
Delivery Charges: Zepto charges a delivery fee based on factors like how far the delivery is, the order size, or any special deals. This fee helps cover the cost of fast delivery and brings in extra money.
Subscription Models: Zepto offers membership plans for regular customers, giving benefits like free delivery or special discounts. This makes it easier for frequent buyers to make purchases.
Advertisement and Promotions: Zepto partners with brands for advertisements on their platform. Brands pay to get more visibility. They also create special offers or coupons in the app to attract more customers.
Data Monetization: Zepto collects useful data from customers. They can sell insights from this data to brands and suppliers to help them understand customer behavior and improve their products.
Fulfillment and Logistics: Zepto could offer its delivery and logistics services to other businesses, creating another source of income.
New Category Expansion: Zepto may expand beyond groceries to sell other items like electronics, health products, or prepared meals, increasing their revenue streams.
Conclusion
Zepto has rapidly emerged as a leading player in India’s quick-commerce space by revolutionizing grocery delivery with its promise of 10-minute service. Leveraging a tech-driven “dark store” model and smart AI systems, Zepto ensures fast, efficient deliveries while maintaining product variety and competitive prices. Its innovative marketing strategies—including meme marketing, influencer collaborations, and referral programs—have helped build a loyal customer base and drive growth. Zepto’s diversified revenue model, spanning product sales, delivery fees, subscriptions, advertising, and data monetization, positions it well for sustainable expansion. Despite recent legal challenges, Zepto’s strong business fundamentals and rapid growth indicate a promising future in India’s evolving e-grocery market.
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