How a 19-Year-Old Raised $600M: Zepto’s Fundraising Strategy

What early-stage founders can learn from Zepto’s insane speed, pitch clarity, and investor magnetism

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Apr 30, 2025

In 2021, while most teenagers were figuring out semester finals and campus placements, Aadit Palicha and Kaivalya Vohra, two 19-year-olds who dropped out of Stanford, were already building a company that would soon become one of India’s fastest-growing startups.

That company? Zepto.
A grocery delivery app that promised one thing — 10-minute delivery.

At the time, even thinking about that was considered crazy.

Today, it’s India’s youngest unicorn. Backed by YC, Nexus, Glade Brook, and StepStone. Valued at $1.4 billion+ and raising $665M+ in under 3 years.

But how did two first-time founders with no fancy last name, no massive funding early on, and no operational experience pull this off?

Let’s break down Zepto’s fundraising strategy — and what early-stage founders like you can learn from it.

Strategic Fundraising Milestones

Zepto's meteoric rise is punctuated by strategic funding rounds:

Pre-Seed Round (January 2021): Raised $730,000 from Global Founders Capital, Contrary Capital, and others, setting the foundation for Zepto's operations.
Series A (October 2021): Secured $60 million, elevating the company's valuation to $225 million.
Series C (December 2021): Attracted $100 million, pushing the valuation to $570 million.
Series D (May 2022): Garnered $200 million, nearing unicorn status with a $900 million valuation.
Series E (August 2023): Achieved unicorn status with a $1.4 billion valuation after a $200 million funding round.
Series F (June 2024): Raised $665 million, increasing the valuation to $3.6 billion.
Follow-up Round (August 2024): Secured an additional $340 million, culminating in a $5 billion valuation.

Xartup, in collaboration with VCCircle and IIT Bombay, is excited to present the 1st chapter of The Pitch FY 25-26 – India’s leading fundraising platform for startups.

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Don’t miss out on this exclusive opportunity to pitch your startup one-on-one to India’s top investors at IIT Bombay on 6th June 2025.

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The Zepto Strategy: Built for Speed, Not Just Delivery

1. 10-Minute Delivery as a Business Model (Not a Feature)

Zepto didn’t just promise speed — they engineered their entire backend around it.

Built dark stores (micro-fulfillment centers) within 3 km radius of high-density urban zones.
Used AI and predictive tech to prep orders even before you hit “Pay Now.”
Claimed an average delivery time of 8 min 40 sec — and never penalized late delivery partners.

While others sold groceries, Zepto sold time.
That’s what got urban India hooked.

2. Branding That Made 10 Minutes Feel Magical

From hoardings to meme marketing, Zepto’s ads screamed one thing:

“We’ll get it to you before you can say ‘ketchup.’”

Every ad campaign had shock-value speed baked into it.
And they nailed modern urban relatability — fast lifestyle, lazy mornings, last-minute cravings.

Partnered with L&K Saatchi & Saatchi for sharp, thumb-stopping creatives
Hijacked pop culture with memes (Avatar, Jawan, IPL, you name it)
Created micro-moments that made the brand stick in daily life

Founders, here’s the lesson:
Attention > Ads. Build a narrative people want to talk about — not just scroll past.

3. Smart Pricing, Not Deep Discounts

Zepto avoided the discount trap most new players fall into.
Instead of burning cash, they optimized:

Dynamic pricing based on locality demand
Focused on repeat behavior over one-time coupons
Launched private-label products for better margins and customer stickiness

Their pricing wasn’t just competitive. It was sustainable.

4. Zepto’s Growth Flywheel: From App Installs to Loyalty

Here’s what they layered on top of the product:

A frictionless mobile app for fast checkouts
Referral programs that incentivized word-of-mouth
Targeted digital ads + influencer tie-ups
Smart product assortment (milk, eggs, bread — high frequency)

Result?

Built trust → Increased retention → Lower CAC → Higher LTV

And that’s how a $665M-funded business scales without bleeding.

Lessons for Aspiring Entrepreneurs

Adaptability is Crucial: Zepto's pivot from KiranaKart underscores the importance of flexibility in business models.
Focus on Core Competencies: By homing in on rapid delivery, Zepto carved a niche in a competitive market.
Build a Robust Infrastructure: Investing in backend operations, like dark stores, can differentiate a startup from its competitors.
Cultivate Investor Trust: Transparent communication and consistent performance are key to securing and retaining investor confidence.
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