How Zepto Disrupted Indian E-commerce Fast

Opening: Building a startup requires passion beyond external rewards. Quote:

"You're really doing it for the love of building. The end goal should not be 'I build so I can make X, Y, Z,' but I'm building so that I have the opportunity to wake up in the morning and build again."

Takeaway:

• Aadhit advises founders to be motivated by the joy of building, not external rewards.
• Intrinsic motivation sustains founders through challenges.
• Founders should align their goals with their passion for lasting fulfillment.

Opening: Applying AI strategically to core business functions can enhance efficiency and growth. Quote:

"Today, greater than 50% of the tickets that are raised on Zepto... are actually solved dynamically by a generative chatbot that's been modified for our exact use cases."

Takeaway:

• Zepto built in-house AI capabilities for key applications like customer support.
• Prioritized AI applications that directly impact their core business.
• Startups should identify and implement AI where it offers significant value.

Opening: Creating a culture focused on excellence and meaningful work attracts top performers. Quote:

"Join here if you're really looking to do the best work of your life... It's not for everybody... but it is for the super ambitious, the super capable that really want to get the best out of themselves."

Takeaway:

• Zepto emphasizes a high-performance culture to attract and retain talent.
• Not every environment fits everyone; defining culture helps self-selection.
• Founders should cultivate a mission that inspires and challenges their team.

Opening: Sustained ambition drives continuous growth and innovation beyond initial success. Quote:

"I genuinely believe we've got a once in a generation opportunity to build a world-class internet company out of India... We are very excited to do that for the next 20-30 years minimum and then much more."

Takeaway:

• Aadhit doesn't consider Zepto a success yet; he aims for long-term impact.
• Maintaining high ambition fuels ongoing progress and sets higher benchmarks.
• Founders should set long-term goals to build enduring companies.

Opening: Navigating fundraising in tough times requires resilience and strong execution. Quote:

"We got hit... by capital markets which basically fell off a cliff, and we couldn't raise capital... We had two competitors that had 7 times the cash... It was existential... We just had to push ourselves through some really tricky moments."

Takeaway:

• Zepto focused on efficiency and operating leverage when fundraising was tough.
• They achieved close to break-even, proving their business model to investors.
• In challenging times, startups must demonstrate strong fundamentals to attract capital.

Opening: By focusing on customer needs and building a superior product, startups can outcompete established players. Quote:

"We were thinking first principles... customer backward versus a lot of the big guys... thinking supply chain backward... If you build a better product for users, you also end up with a better P&L."

Takeaway:

• Zepto outcompeted big players by focusing on delivering exceptional customer experience.
• Customer-centric approach can lead to better economics and competitive advantage.
• Startups should leverage first-principles thinking to identify gaps in the market.

Opening: The right hires are essential for execution excellence and avoiding costly mistakes. Quote:

"The biggest mistakes I've made... are the wrong hires... Those mistakes are very costly, especially in that 2022, 2023 period where it was existential for us."

Takeaway:

• Aadhit emphasizes that talent is the most fundamental input for execution.
• Wrong hires can be detrimental, especially in critical periods.
• Startups should prioritize hiring high-quality talent to ensure survival and growth.

Opening: Recognizing when a model isn't working and being willing to pivot is crucial. Quote:

"We realized... that there's no retention here... We thought we were dead... pretty much everyone was telling us... you guys are essentially in a dead space."

Takeaway:

• Despite early failures, Zepto pivoted to a new model focusing on 10-minute delivery.
• Listening to customers and data helped them find the right approach.
• Effective pivots require honesty about what's not working and openness to change.

Opening: Engaging directly with customers can uncover crucial insights for product development. Quote:

"We went to one of the stores... and basically commandeered the store ourselves... I was basically like the shopkeeper for a couple of days, KB was delivering, and we could basically see... people are actually repeating..."

Takeaway:

• Aadhit and his co-founder did deliveries themselves to understand customer needs.
• This hands-on approach revealed the importance of 10-minute delivery for retention.
• Founders should be willing to get their hands dirty to deeply understand users.

Opening: Focusing on customers rather than just logistics can be pivotal in finding product-market fit. Quote:

"A lot of the people that were in the market... were trying to build its supply chain backward instead of user backward... The insight was... let's do 10-minute delivery, but also let's build out the full stack of commerce."

Takeaway:

• Zepto differentiated by prioritizing customer needs over logistical convenience.
• By designing their model around user experience, they achieved better retention and economics.
• Founders should consider building products from the customer backward to find PMF.