Copyright yourstory
Most of Zepto’s sales come from what one would expect: fruits, vegetables, atta, dal, masalas, and everyday FMCG products like cola. But even within these traditional categories, the company is seeing a surge of newer D2C brands, revealed Kaivalya Vohra, Co-founder of Zepto, during a panel discussion with Shradha Sharma, Founder and CEO of YourStory, at TechSparks 2025. “What we’ve seen very consistently is that even in traditional core categories like ghee and oil, the share of sales from newer and newer brands is exploding. And we’ve consciously wanted (them) to explode,” said Vohra, adding that D2C brands create more variety and options for customers. “Take something like ghee—there’s a brand called Two Brothers, and they’re doing incredibly well on our platform.” Even in legacy core categories, people are identifying gaps and seeing entrepreneurs innovate, he pointed out. “You find a problem that you feel is unsolved, and then you just go after it,” he added, adding that it does not have to be anything dramatic. “Even in the basics, if you figure out a problem that people have, you can innovate and solve that,” he said. Categories such as skincare and non-alcoholic mixers are also seeing strong growth, Vohra noted. Zepto has been working to make it as easy as possible for D2C brands to grow on the platform—providing tools, visibility, and reach to reach the right customers, said the co-founder. “It’s actually hard to pinpoint one or two categories. If you open the Zepto app, scroll down the homepage, and click on any of our 20–25 categories, you’ll see the same story—so many brilliant D2C brands doing incredibly well,” he said. Democratised distribution This wave of new brands has been enabled by the democratisation of distribution. In the FMCG business, the traditional moat used to be distribution—the number of pin codes you are present in. For someone starting fresh with limited capital, it was almost impossible to build. Now, that barrier has fallen, said Vohra. Quick-commerce platforms have levelled the playing field, making it easier for newer brands to reach consumers nationwide, he said. Adding to this is the increasing spending power of consumers, said Nikhil Mittal, Zepto’s CTO. He pointed out that the Indian consumer is far more willing to spend than many assume. “There’s often this perception that Indian customers aren’t willing to spend much. But what we’ve seen is the opposite… We have a very aspirational generation willing to spend. They are value sensitive, but as long as you provide them the right value and right quality, they are willing to explore,” he said, adding that there is strong adoption across categories, including the premium ones. Expansion beyond grocery Looking ahead, Vohra assured that the fundamentals of Zepto’s business will remain the same and it will continue operating through dark stores, but what it delivers will evolve rapidly. “For example, just a year ago, apparel and fashion on Zepto were practically non-existent—beyond a few basics like socks and underwear, there was nothing. Today, it’s one of our fastest-growing categories,” he said. “Pharmacy is another great example. It’s a new category for us, but already doing very well.” Zepto has built supply chains capable of delivering everything from Manyavar kurtas to Levi’s jeans and Reebok shoes within 10 minutes, said Vohra. “That required a lot of innovation, such as how we store inventory, handle 10-minute returns when something doesn’t fit, and so on. All of this has happened just in the past 12 months." The same approach, he said, holds true for other categories such as electronics, small appliances, general merchandise, beauty, and now pharmacy. “We didn’t invent this philosophy—Jeff Bezos did 20 years ago. Customers will always want faster delivery, wider selection, and lower prices. Our job is to keep getting a little better at each of those; that’s what our focus is.” Quick expansion has been made possible by the in-house tech stack that the company controls, said Vohra. “Every category is unique, but since we’ve built and control our tech stack completely in-house, launching new verticals is very fast. Because we own the entire foundation, the variety of products and categories we get into will continue to grow exponentially.” (Edited by Swetha Kannan)
