How Zepto is poaching workers from Instamart, Blinkit, other rival firms to win the quick commerce war
Zepto, India's quick-commerce unicorn co-founded by 21-year-old Kaivalya Vohra, is aggressively expanding its market share by offering massive salary hikes to attract top talent from competitors like Swiggy Instamart and Blinkit. The startup is spending heavi…
Zepto, the 10-minute grocery delivery startup, is pushing hard to capture market share in India’s quickly expanding e-commerce sector. A key part of its strategy involves poaching top talent from its rivals. The company has been offering lucrative salary hikes to attract employees from competitors like Swiggy Instamart, Blinkit, and other quick-commerce players. This aggressive talent acquisition approach is part of Zepto’s larger strategy to outpace its competition and solidify its position as a leader in the space.
According to a Moneycontrol report, Zepto’s monthly cash burn has skyrocketed to ₹250 crore ($30 million), with a significant portion of this budget allocated to hiring and retaining top talent in the industry. This comes at a time when the competition in the quick-commerce market is heating up, with major players like Swiggy, Blinkit (owned by Zomato), and BigBasket (backed by the Tata Group) also pouring resources into expanding their offerings.
Massive Spending and Market Share Goals
In addition to its talent-focused strategy, Zepto has been spending heavily on marketing, with nearly ₹120 crore of its monthly cash burn allocated to digital marketing alone. This has allowed the company to become the leading app in its category, further intensifying the battle for market share in the quick-commerce sector. Despite the high expenditure, Zepto remains focused on expanding its footprint across major cities in India and improving its customer acquisition strategies.
Zepto has secured substantial funding to fuel its growth. The company closed a ₹2,500 crore funding round, attracting investment from high-net-worth individuals and family offices. This funding is being used to expand Zepto's store network and ensure that it has the capital to compete with industry giants.
Financials and Profitability Push
While Zepto continues to burn cash at a rapid pace, there are signs of growing financial stability. Zepto’s CEO and co-founder, Aadit Palicha, confirmed that more than 70% of their existing stores have reached full EBITDA profitability. Palicha emphasized that the capital is being used primarily for capital expenditure, working capital, and operational setup as Zepto works to launch hundreds of new stores every quarter. This shows that Zepto’s investment in its expansion is not without purpose, and it aims to build a sustainable business model over time.
The Rise of Kaivalya Vohra: India’s Youngest Billionaire
At the heart of Zepto's rapid rise is 21-year-old Kaivalya Vohra, who, alongside Palicha, co-founded the company. Vohra has quickly become one of the youngest billionaires in India, with a net worth of ₹3,600 crore, according to the Hurun India Rich List 2024. Vohra’s entrepreneurial journey began with a drop out from Stanford University, where he had pursued a degree in Computer Science. Together with Palicha, Vohra launched the platform Kiranakart in 2020, which later evolved into Zepto in 2021. The startup's impressive growth trajectory has helped it achieve unicorn status, with a valuation of $1.4 billion.
The success of Vohra and Palicha reflects their ability to capitalize on the growing demand for quick-commerce, particularly during the pandemic when the need for grocery delivery surged. Since its inception, Zepto has expanded rapidly across key cities like Bengaluru, Delhi, Chennai, and Lucknow.
Zepto’s rise is occurring in a highly competitive environment. Rivals like Swiggy Instamart, Blinkit, and BigBasket are also investing heavily in talent, technology, and marketing to maintain their market share. For instance, Swiggy has gone public, while Zomato, Blinkit’s parent company, plans a Qualified Institutional Placement (QIP) in December to raise additional capital. BigBasket, backed by the Tata Group, is also pushing forward with its own plans for expansion.
Despite this intense competition, Zepto continues to push forward with its strategy of aggressive expansion. The company has been offering massive discounts to customers, increasing its market share while simultaneously increasing its cash burn. At the same time, it is investing in marketing and promotions to ensure the success of its high-stakes expansion efforts.
Zepto’s ability to maintain its aggressive growth plans while keeping an eye on profitability will be key in determining its future success. As the quick-commerce sector evolves, Zepto’s focus on poaching top talent, expanding its operations, and improving customer acquisition strategies will likely remain central to its business model. The next few years will reveal whether this bold approach can ensure Zepto’s place as a dominant player in India’s fast-growing quick-commerce industry.