You have to spend money to make money.” This popular saying highlights the necessity of investment and perfectly defines the current situation of Zepto co-founder and one of India’s richest persons – Kaivalya Vohra. His quick-commerce startup’s monthly cash burn has risen to over Rs 250 crore (USD 30 million) as Zepto competes directly with online grocery giants like Blinkit, Bigbasket, and Swiggy Instamart.
Zepto’s monthly cash burn has increased from Rs 35-40 crore in May, mainly due to heavy spending on new stores, digital marketing, and talent acquisition amid intense competition in the quick-commerce sector.
According to sources cited in a Moneycontrol report, Zepto is now spending nearly Rs 120 crore per month on digital marketing, making it the leading app in its category.
Fresh Funding
Irrespective of aggressive cash burn Zepto is able to secure fresh funding to support its expansion. It closed the Rs 2,500 crore funding round.
This development was confirmed by Zepto’s CEO and co-founder Aadit Palicha. He also confirmed that over 70 percent of their existing stores have achieved full EBITDA profitability.
Palicha said that a large amount of capital is being spent, mostly on capital expenditures, working capital, and operational setup, to launch several new stores every three months.
Kaivalya Vohra, 21, One Of India’s Richest Man
Kaivalya, a Stanford dropout, was recently featured in Hurun India Rich List as the youngest person to feature for three straight years after starting his quick-commerce company Zepto with his partner Aadit Palicha in 2021.
Kaivalya Vohra’s Net Worth
21-year-old Kaivalya Vohra has a net worth of Rs 3,600 crore, as per the recently published Hurun India Rich List.
Zepto – The Begining
Starting as a fast, 45-minute grocery delivery provider, Zepto quickly made its mark in big cities like Bengaluru, Delhi, Chennai, and Lucknow. Today, worth $1.4 billion, Zepto has soared to unicorn status and holds a key spot in the fierce quick-commerce field, where it rubs shoulders with thoroughbreds like Zomato’s Blinkit and Swiggy Instamart.