Growth comes at a cost. At least that is what Zepto co-founder and one of India's richest individuals, at just 21, Kaivalya Vohra's plans suggest as the monthly cash burn of his quick-commerce startup, that has taken online grocery giants like Blinkit, Bigbasket and Swiggy Instamart head on, has soared to over ₹250 crore ($30 million) in recent months.
A big chunk of the monthly cash burn of Zepto, which has seen a massive leap from ₹35-40 crore in May, is the money poured into new stores, digital marketing and talent acquisition given the heating competition in the quick-commerce space.
According to people familiar with the matter cited in a Moneycontrol report, Zepto is spending close to ₹120 crore per month on digital marketing alone, becoming the leading app in its category.
Despite the aggressive cash burn, the company has secured fresh funding to fuel its expansion, closing a ₹2,500 crore funding round, backed by high-net-worth individuals and family offices in India, the report said.
Zepto’s CEO and co-founder, Aadit Palicha, confirmed the developments, saying that more than 70 percent of their existing stores have achieved full EBITDA profitability.
He explained that the capital being spent is mostly for capital expenditure, working capital, and operational setup to launch hundreds of new stores every quarter.
{{/usCountry}}He explained that the capital being spent is mostly for capital expenditure, working capital, and operational setup to launch hundreds of new stores every quarter.
{{/usCountry}}Seems like bold and high-stakes business strategy are the ingredients for success, as Zepto co-founder Kaivalya Vohra's growth trajectory demonstrates.
Kaivalya Vohra, one of India's richest at 21
Twenty-one-year-old Vohra dropped out of Stanford and landed in Hurun India Rich List as the youngest person to feature for three straight years after starting Zepto with his friend Aadit Palicha in 2021.
Zepto started as a 45-minute grocery delivery service and quickly expanded its operations across major cities like Bengaluru, Delhi, Chennai, and Lucknow. With its valuation now at $1.4 billion, Zepto has earned unicorn status and is a key player in the quick-commerce sector, which is already crowded with heavyweights like Zomato’s Blinkit and Swiggy Instamart.
Aadit Palicha (22), was second youngest on the list Hurun India Rich List this year with a net worth of ₹4,300 crore.
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Vohra made his debut on the Hurun India Rich List 2022 at the age of 19 and since then has featured on the list every year.
Vohra's LinkedIn profile says he completed his schooling from Dubai college and pursued a Bachelor’s Degree in Computer Science from prestigious Stanford University. He dropped out from Stanford to lay foundation of ‘Kiranakart’ with Aadit Palicha.
Kiranakart, an online grocery delivery platform promising groceries within 45 minutes, was expanded into Zepto in 2021, which was an extension of Kiranakart Technologies Private Limited.
Zepto currently has a hefty cash balance of $1.4 billion.