Blitzo: The hyperlocal courier delivering products in MINUTES

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Hey 👋, this is the Kitsune VC Newsletter: A subset of Today in AI, where we vest a $10 million early stage fund over the next 2 years.

We make “investments” every week into early stage startups we think will make it big in hopes to beat the returns of big funds like Sequoia and a16z. 💸

Today we’re talking about our next investment: a startup that already has a £350k ARR run rate and uses AI-powered logistics to deliver parcels instantly.

The Problem: Online shoppers want instant delivery 📦

⚡ 86% of online shoppers in the UK want instant delivery—not just for groceries, but for clothes, products, accessories, and pretty much everything you could shop online.

For e-com businesses, “Same-day” is typically the best standard option, even at 53% of supply chain costs. ⏳

📦 Even with Amazon, considered to have one of the fastest & most reliable delivery services, its best delivery option is “Same-day”, delivering morning orders by late evening.

💰 On the supply side, gig riders do not get paid well. Blitzo found that gig riders are typically underpaid, making under £100 a day.

The market 🌎

People clearly want instant delivery, and the market for this is huge. 📈

💵 The market for “last-mile” delivery specifically is $169.8 billion globally, growing at 16.2% CAGR, and projected to reach $564 billion by 2032.

A business would need just 2% of this market over the next 8 years to reach a $10 billion valuation. 💰

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The Solution? Blitzo. 🚀

💡 Sundar Arvind and Arjun S Khanna founded Blitzo in April 2024 to solve this exact problem.

Their solution is an agentic last-mile courier, helping people and businesses deliver in minutes. 📦

This includes a 24/7 autonomous critical decision-maker & communicator, a trained EV fleet of gig riders, and automated bookings through an AI sales agent. 🤖

This technology helps optimize delivery routes and automate deliveries to be done ASAP.

Blitzo’s business model is:

1.  💳 Pay-as-you-go – a £3.49 base fee per delivery (varies with distance, size, and time demand).

2.  🔄 Subscription – a fixed fee per delivery based on volume, generating recurring revenue from Volume x Fixed Per Order Fee.

Founders Backgrounds 👀

Sundar grew up in Bangalore, India and was extremely competitive in everything he did.

At 12 years old, he was a professional tennis player, ranking top 3 in India and top 1000 in the world. 🏆

Sundar then decided he wanted to be a music producer, so he dropped tennis and went all in. 🎵By 15 years old, he had 1M+ streams and became the first Indian to sign with Warner Bros Music.

📚 Sundar later got into King’s College London, moving to the UK for university.

Arjun started coding at the age of 12 after watching The Social Network for the first time. He’s been obsessed ever since. 💻

He also got into King’s College London, where both co-founders met, and Blitzo was born.

💡 The idea for Blitzo came in April 2024, when Sundar noticed a huge demand for convenience, especially in big cities like London.

At the moment, only groceries and food can be delivered in minutes. But higher-value products like fashion garments, tech products, etc. take days to be delivered.

This is when they thought of Blitzo. They moved quickly, validating the idea by confirming both user demand and supply (gig riders).

They partnered with 2 fashion brands piloting Blitzo and spoke to a ton of couriers and gig riders. 🤝

📞 Blitzo started by doing things that don’t scale. They spoke to 1000 individual couriers and gig riders in London 1-on-1 to get immediate feedback.

Investment Rationale 💸

🏍️ Today, Blitzo has a fleet of 750+ riders and 1500+ successful orders with a 99.6% first-attempt delivery rate.

📊 They’re already at £40k-50k MRR and have a £500,000 ARR run rate—they’ve already hit Product-Market Fit (PMF).

📝 They’ve also secured signed pilots for Q2 2025 for companies like WeBuyAnyPhone.com, Telefonica, and Mazuma.

🚀 By Q3 2026, Blitzo plans to hit £500k MRR by expanding deliveries for e-commerce brands and using dark stores—similar to the Zepto model.

There have been similar businesses doing food delivery (restaurants & groceries), but none have stepped into higher-value products.

⚡ Delivering higher-value items quickly at scale is what separates Blitzo from companies like Zepto, Deliveroo, and UberEats—and why it can conquer the market fast.

Their rapid growth and quick execution to achieve PMF are key reasons for our investment.

Deal Structure 🤝

💰Blitzo is now raising a £1.5M seed at a £7.5M-10M valuation.

We’ll be investing $400k, equivalent to ~£308K, giving us ~3.5% of equity in Blitzo.

Just to clarify once more, none of the investments we make as part of Kitsune VC are real, we are only simulating what investments we’d make if we operated one.

This is NOT financial advice.

Preet’s view🥊

Great start-up and it was amazing watching them pitch, glad to see some deal flow come our way from Kickstart Global.

🚀 Given Zepto’s success, it's exciting to see Blitzo grow and bring the model to the UK. It has a lot of potential in a fast-moving city with high demand for easy delivery.

The improvement of first-attempt deliveries will be hugely valuable—it creates so much potential given packages are just lost and wasted after many ineffective delivery attempts. 📦

💰 I am only concerned about the unit economics and the efficiency of such a model. Given that they are charging £12 for car delivery for next-hour delivery for 3 to 6 miles. An average drive across London takes 20-30 minutes for 5 miles (during off-peak hours and not including driving to the pick-up location). Cutting £8 for driver salary + car degradation + fuel costs, the margin thins out quite quickly.

It will be interesting to see the growth of their Agentic service for last-mile delivery—what I think will be a key driver in their long-term growth as a tech company. 🤖

Before you go 👋 

Thank you for reading.

So far we’ve invested in 4 startups and have vested $1.5 million of our $10 million fund.

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