Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra, both aged 19 at the time. They have raised $100 million from investors including Y Combinator, valuing the company at $570 million after only 5 months of operations. Zepto operates more than 100 "dark stores" or micro-fulfillment centers located in high-demand areas that allow for 10-minute grocery delivery. Technology is used in the dark stores to efficiently fulfill orders and plan delivery routes. Zepto currently delivers over 2,500 grocery and household items to customers.

1. Arnit Jain
Ankur Agrahari
Ayush Kejriwal
Harshit Agarwal
& DARK STORES
& DARK STORES
ZEPTO
ZEPTO
Inventory Management

2. EPTO
EPTO
FOUNDERS
Aadit Palicha
Kaivalya Vohra
A Brief Story About The Company
Aadit Palicha and his childhood friend Kaivalya Vohra, both 19 at the time, are
the founders of Zepto. They recently raised $100 million with Y Combinator,
spearheading this fundraising round, raising Zepto's valuation to $570 million
in just five months of its operations. The Zepto business concept is based on
the fast-growing rapid commerce. The Zepto business model's premise of 10-
minute delivery has proven to be a game-changer. More than 100 dark stores
or micro fulfilment facilities, are located in high-demand areas.
Technology is used in these dark establishments to conduct activities such as
product positioning. They also decide on store locations and map out delivery
routes to prevent significant traffic congestion. The company currently delivers
over 2500 items, including kitchen essentials, fresh vegetables, personal care
items, snacks and beverages, and household cleaning supplies.
01

3. Due to declining retail margins, competitive pressure, and rising
customer expectations, global merchants began experimenting with
dark storefronts long before the pandemic. And Covid-19 only
increased its adoption. In India, the number of Internet users
surpassed 550 million in 2020, putting online shopping platforms
within reach of around 41% of the population. Evolution of digital
payments, allowed more than 33% of the population to adopt it for
purchases.
All of these factors, combined with a shift in Indian consumer
shopping behaviour during the lockdown, spawned a black store
business model that could meet customers' online shopping needs
while also promising quick delivery and cost-effectiveness. During
the Covid-19 outbreak, the concept for Zepto sprang from the
limitations of their houses.
A surge in demand for grocery delivery services meant that
groceries and other necessities would arrive in a couple of days,
creating a void for quick delivery. But to bridge this gap Zepto,
through a chain of dark stores or retail distribution centers employs
a hotspot method to cater largely to digital purchases.
EMERGENCE
02

4. Traditional retail stores or supermarkets that have
been turned into eCommerce warehouses or
distribution hubs are known as dark stores. Grocery,
clothes, consumer durables, and home goods stores
are examples of dark stores. Customers benefit from
a dark store online order and purchase system,
same-day delivery, and in-store pickups at these
D2C (Direct-to-Consumer) firms. Dark stores aren't
open to end customers because they combine retail
and eCommerce. Buyers can, however, make digital
purchases through dark store online shopping
platforms (which could be web stores or mobile
applications), with goods delivered to their homes or
retrieved from a predetermined place.
04
DARK STORE
CONCEPT

5. DELIVERY
TYPES
Home delivery refers to quick, convenient and contactless delivery of items such as
groceries and other necessities, and it has grown in popularity over the last two
years. Zepto promises to deliver groceries at your doorstep within 10 minutes with
the help of its dark store inventory model.
HOME DELIVERY
IN-STORE PICKUP
A special pick up location inside the
store, commonly near the front
entrance, is another traditional Dark
Store option. Customers will be able to
pick up their items without having to
stroll through the entire store.
Customers would appreciate this option
because it eliminates delivery costs.
CURBSIDE PICKUP
Curbside pickup often consists of a
designated parking space where a
retailer staff will carry out the item
without the client having to leave their
vehicle. Customers are protected to
the greatest extent possible in the
event of a pandemic, and it is also
highly handy.
05

6. AUTOMATION
Manual Material Handling (MMH) is
the process of moving, lifting,
retrieving, and storing objects and
products. For physical handling,
businesses rely on labour. It includes
operations such as lifting, pulling,
carrying, holding, and restraining.
01
A system that combines automated
machinery with human work and
intervention is known as semi-
automation. Semi-automation allows
you to choose which sections of your
warehouse will be run manually and
which will be automated.
02
In a fully automated system, there is
no need for any human contact
when it comes to inventory control;
the technology can handle
everything. It boosts production
while lowering waste, resulting in
significant cost savings.
03
LEVEL OF
03
WITHOUT AUTOMATION FULLY AUTOMATED
SEMI-AUTOMATED

7. 01
02
05
03
ADVANTAGES
Dark Stores offers the convenience of online
shopping with the benefit of instant delivery of your
products. Covid-driven social distancing and safety
measures have necessitated contact-free shopping.
FAST AND CONTACT-FREE SHOPPING
04
Grocery stores particularly benefit from the
dark store concept, focusing on storage and
click-and-collect capabilities to significantly
improve SKU management.
IMPROVES SKU MANAGEMENT
Transforming physical stores into dark stores
expedites order fulfilment and hence last-
mile delivery is quicker and more efficient.
EFFICIENT DISTRIBUTION AND
DELIVERY
Dark stores can enhance inventory control,
and companies can achieve larger order
volumes in these customer-free zones. Dark
Stores offers the convenience of online
shopping with the benefit of instant delivery
of your products.
ENHANCED INVENTORY
CONTROL
04
OF DARK STORES
The layout of customer-free dark stores can be
optimised for rapid picking, and improved
storage capacity allows for a more extensive
range of products. Meanwhile round-the-clock
online accessibility facilitates broader reach,
and potentially a much bigger audience.
MORE PRODUCTS AND A LARGER
AUDIENCE

8. NEED OF THE HOUR
2.650K
Total Users
Really Great Site
1.850K
Total Users
1.010K
Total Users
Really Great Site Really Great Site
17
& FUTURE
After Covid - Converting a brick-mortar store into a dark store has been a
great way to optimize the supply chain, and improve customer experience.
Many retail companies have benefited from the Dark Stores during the
pandemic situation. And it is likely that the concept of Dark Stores is not only
here to stay but will continue to evolve in the coming years.
The pandemic has not only accelerated the shift in consumer behavior but
has already pushed a shift from brick-and-mortar stores to online shopping.
Since long before the pandemic, converting physical stores into dark stores
has been a way to reduce cost, optimize the supply chain, and leverage online
shopping. Grocery delivery and fashion retail were already big on dark stores,
even before the pandemic hit.
We’ve witnessed this in all kinds of contexts the past year, as hotels have
turned empty rooms into co-working spaces for the WFH-crowd and
restaurants have started offering takeaway menus and home delivery.
Because even though confined indoors, consumers did not stop consuming.
Despite incomes going down significantly for many, global shopping volumes
overall increased, with the retail sector gaining 35% in market capitalization
from February 2020 to April 2021. And yet, many retail businesses have been
struggling.
So what separates the leaders from the laggards?

9. PROBLEMS
06
THE SKU CHALLENGE
THE PERISHABILITY CHALLENGE
THE FULFILLMENT WINDOW CHALLENGE
Dark Stores can improve SKU management in a variety of ways. They save money on real estate by
avoiding congested regions in cities. They also serve a large number of online food retailers at once,
lowering real-estate expenditures.The ability to strengthen SKU management improves distribution
accuracy and prevents mix-ups
Things in the grocery store have a variety of expiration dates and they’re all supposed to be
distributed in their perfect states at the same time. It necessitates flawless warehouse control,
product replenishment, and order fulfillment – all of which must work in tandem to minimize the time
between off-the-store-fridge and in-the-home-fridge.
Online grocery shoppers plan for only a few days. Consider a scenario in which internet orders pour in
at midnight, with arrival scheduled in time for the next day’s breakfast planning. Dark stores are
much better at addressing this problem
WITH DARK STORES

10. SOLUTIONS
AI has become a foundational requirement to
automate and improve forecast accuracy,
improving dark store availability while eliminating
hours of manual planning each week. An advanced
replenishment system can prevent the risk of waste
for every order based on inventory and demand
levels.
AI-DRIVEN FORECASTING AND REPLENISHMENT
DRIVE DARK STORE AVAILABILITY
06
SPACE OPTIMIZATION IMPROVES DARK STORE
PICKING EFFICIENCY
Good space planning is critical to meeting the
value proposition of extreme speed. Because space
is at a premium in small-format dark stores,
inventory and space planning teams must work
hand-in-hand to achieve the highest possible
availability and the greatest possible speed.

11. BLINKIT
The user interface is relatively easier to
operate.
Instant, real-time updates can be
accessed.
No minimum order value!
Usually, there are no-minimum delivery
charges (Rs 0-9/-)
BIG BASKET
Purchases farm products, and then
managing the stock of all these items in its
warehouses.
Big Basket buys products from some of the
best and largest brands.
Hyperlocal Business Model-Big Basket has
tied up with more than 1800 local stores
and takes a delivery charge of Rs. 30.
The average basket size for grocery top-
up business is close to Rs 400-450.
The 3i Framework: Intent, Indulgence,
Inspiration
Enabling Intent
Tempting Indulgence
Driving Inspiration
INSTAMART
COMPETITORS
24

12. www.reallygreatsite.com
THANK YOU
26