Zepto To Expand Cafe Service Across India

Quick commerce major Zepto has announced expansion of its cafe service into major cities after achieving an annualised revenue run rate of INR 160 Cr from 15% of its dark store network.

Currently, the company operates its cafe service only in Mumbai and plans to expand it to 120 across cities, including Delhi NCR, Bengaluru, Hyderabad, Chennai and Pune among others.

The expansion comes as competitors enter the quick commerce snack delivery space. 

Blinkit plans to launch cafe service in select cities this month. Swiggy introduced a 15-minute snack delivery service in select areas of Bengaluru in September through Swiggy Cafe.

Zepto Cafe offers 148 items including beverages and snacks with a 10-minute delivery promise. The menu includes chai, coffee, breakfast options, pastries and savoury snacks.

“We have cracked 10-minute delivery with high quality food preparation processes. Our team has researched and sourced equipment for cafes, including coffee machines that employ handcrafted brewing techniques,” Zepto CEO Aadit Palicha said.

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto pioneered 10-minute delivery in India. The company delivers over 25,000 products across categories through its network of dark stores.

Zepto launched Cafe in Mumbai in 2022 with a mix of branded and non-branded food items. The vertical boosted average order values as users order beverages and snacks with groceries.

The company raised over $1 Bn in 2024, including $340 Mn at $5 Bn valuation in August and $665 Mn at $3.6 Bn valuation in June. It plans to raise additional $300 Mn from Indian investors including family offices and HNIs.

Zepto claimed its GMV for FY24 crossed $1 Bn with 75% stores achieving EBITDA positivity by May 2024. The company plans to expand from 350 to 700 stores.

According to CLSA, the gross order value of major quick commerce players like Blinkit, Zepto and Swiggy Instamart may reach $10 Bn by FY26 as companies expand beyond groceries into Tier II and III markets.

Zepto plans an IPO in the next couple of years and is in the process of redomiciling to India. The company aims to scale operations while maintaining profitability through its expansion into new verticals like Cafe and planned territories.

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