Zepto, the quick commerce platform, is reshaping India’s food and beverage delivery landscape with its cafe business. Combining the convenience of 10-minute delivery with a curated menu of coffee, croissants, all-day breakfasts, and other indulgences, Zepto aims to achieve an annualized revenue run rate (ARR) of ₹1,000 crore by the next financial year.
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Scaling Rapidly with a Nationwide Expansion
Currently operational at over 120 cafe outlets across Mumbai, New Delhi, and Bengaluru, Zepto Cafe is set to expand into Hyderabad, Chennai, and Pune. With an aggressive strategy to launch more than 100 cafes per month, Zepto is building an extensive footprint. By March 2025, the company plans to operate 700 dark stores across India.
This rapid expansion underscores Zepto’s focus on capturing a significant share of the quick-service cafe market. The cafe division has already achieved an impressive ARR gross merchandise value (GMV) of ₹160 crore, using only 15% of the company’s expanding dark store network.
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What Sets Zepto Cafe Apart
The Cafe offers a diverse menu with over 148 items, ranging from freshly brewed tea and coffee to pastries, savory snacks, and all-day breakfast options. By leveraging state-of-the-art equipment and meticulously sourced ingredients, Zepto ensures high-quality food and beverages are delivered to customers within 10 minutes.
Zepto co-founder and CEO Aadit Palicha highlights the innovation driving their success:
“We’ve combined India’s favorite snacks and beverages with our 10-minute delivery model to create a service that resonates deeply with our customers. The response has been phenomenal, and we are excited to continue scaling this business with proven unit economics.”
Competing in the Quick Delivery Market
Zepto’s ambitions come amid rising competition in the quick delivery space. Swiggy recently rolled out its 10-minute delivery service, Bolt, across major cities such as Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune. Additionally, Bengaluru-based startup Swish is catering to this demand with cloud kitchens offering snacks, beverages, and meals in record time.
Zomato had also experimented with 10-minute food delivery in Gurugram in 2022 but later pivoted to Zomato Everyday, a service delivering meals prepared by home cooks in shorter timelines.
Zepto’s Cafe business, however, aims to differentiate itself by blending convenience with premium-quality offerings. Its strong focus on research and innovation in food preparation processes and delivery logistics positions it as a leader in this segment.
Financial Backing and Growth Prospects
Zepto’s growth is fueled by substantial funding. The company is on the verge of raising $300 million from investors, including prominent Indian family offices and celebrities like Amitabh Bachchan and Sachin Tendulkar.
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This fresh infusion of capital will further bolster Zepto’s expansion plans, enabling it to extend its Cafe business to new cities while enhancing its logistics and delivery capabilities.
Meeting the Demands of a Fast-Paced Lifestyle
The rise of quick commerce reflects the growing need for convenience in India’s urban centers. Zepto Cafe aligns perfectly with this trend, offering customers a quick, reliable, and high-quality solution for their on-the-go food and beverage needs.
Palicha explains:
“We have cracked 10-minute delivery with high-quality food preparation processes, which is why we are seeing strong customer love. Over the past year, our team has meticulously researched and sourced state-of-the-art equipment for our cafes, including coffee machines that employ handcrafted brewing techniques.”
The Road Ahead
With its ambitious plans and customer-centric approach, Zepto Cafe is set to become a dominant player in India’s quick-service Cafe market. By targeting an ARR of ₹1,000 crore in the next financial year and continuing its nationwide rollout, the company is paving the way for a new era of quick commerce.
As Zepto expands its footprint and refines its offerings, it is not only meeting the needs of today’s fast-paced urban lifestyle but also setting new benchmarks for quality and efficiency in the industry.
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