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  • Zepto Introduces 10-Minute Medicine Delivery in Mumbai, NCR, Bengaluru, and Hyderabad

    Zepto Introduces 10-Minute Medicine Delivery in Mumbai, NCR, Bengaluru, and Hyderabad



    Zepto Pharmacy: 10-Minute Medicine Delivery Service

    Zepto Pharmacy: 10-Minute Medicine Delivery Service

    Zepto Pharmacy is revolutionising the delivery of medication with its new 10-minute medicine delivery service, available in various locations including Mumbai, Bengaluru, Delhi NCR, and Hyderabad. This quick commerce player has invested a year refining its customer service, supply chain, and compliance methods before broadening its reach.

    High Operational Standards at Zepto Pharmacy

    Aadit Palicha, the CEO and co-founder of Zepto, emphasised the importance of maintaining high operational standards and underscored the complexity of this sector, stating that it is essential to pace growth rather than expand quickly.

    Competition in Medicine Delivery Services

    The launch of Zepto Pharmacy puts the company in direct competition with peers offering similar services. While over-the-counter medications have been accessible on various platforms, the focus is now shifting towards prescription drugs, which present their own challenges, such as requiring a valid doctor’s prescription for purchase.

    Recent Developments in Prescription Medicine Delivery

    Recently, Blinkit began testing its prescription medicine delivery service in selected areas of Bengaluru. This service includes treatments for respiratory, heart, eye, ear conditions, neurocare, and antibiotics. Additionally, Blinkit has offered free doctor consultations for customers who are unable to upload prescriptions for specific medications. All orders are completed by licensed pharmacies and provided in tamper-proof packaging to ensure safety.

    Blinkit’s new service has emerged following Swiggy’s partnership with PharmEasy, which allows for the sale of prescription medications through Swiggy’s dark stores and app interface.


  • Zepto Cafe Halts Expansion in Smaller Cities Due to Supply Chain Challenges and Rising Costs

    Zepto Cafe Halts Expansion in Smaller Cities Due to Supply Chain Challenges and Rising Costs


    Zepto Cafe Faces Temporary Closures in North India

    Zepto Cafe, the rapid food service division of Zepto, has temporarily halted operations in several smaller cities across North India, including Agra, Chandigarh, Meerut, Mohali, and Amritsar. As reported by ET Now, approximately 44 cafes have closed, impacting more than 400 employees, some of whom are from newly launched locations.

    Reasons for the Closures

    The shutdowns are attributed to escalating expenses and supply chain complications. A report from Moneycontrol highlighted that Zepto was spending between Rs 250 and 300 crore monthly late last year. Recently, this expenditure has been reduced to around Rs 95 crore per month, down from Rs 115-120 crore in March and Rs 105-110 crore during January and February.

    Staffing Adjustments

    A significant reason for these changes is Zepto’s initiative to recruit additional personnel. The company, led by Aadit Palicha, is reportedly decreasing store teams from nine members to seven or eight in an effort to cut costs and optimise operations.

    Official Statement from Zepto

    In a statement to ET Now, Zepto confirmed that the affected cafes have been put on hold to address ongoing supply chain issues. The company anticipates resuming operations in these cities by the end of the upcoming quarter. A representative mentioned their continued commitment to the cafe business, stating intentions to invest aggressively in the future.

    Future Outlook

    Despite the current challenges, Zepto exhibits a positive outlook. The company reported achieving over 100,000 daily orders in February and anticipates that figure will triple over the next year.

    Industry Context

    This situation arises as major competitors reassess their food delivery strategies. Recent actions include Zomato discontinuing its 10-15 minute food delivery service, while Swiggy has expanded Swiggy Bolt to more than 500 cities.

  • Zepto Executes Strategic Flip: From Singapore Back to India

    Zepto Executes Strategic Flip: From Singapore Back to India

    Zepto Transitions Headquarters from Singapore to India

    Zepto, a quick commerce platform, has successfully completed its transition from Singapore to India, as confirmed by the company’s Chief Financial Officer, Ramesh Bafna. This change, known as a reverse flip, allows the Mumbai-based company to establish its main office in India and begins the steps towards an initial public offering (IPO), which has been in preparation for several months.

    This announcement follows the recent approval obtained from the National Company Law Tribunal (NCLT) for their reverse merger. In line with media reports, Zepto is seeking to raise between $400 million and $500 million through its IPO and has appointed Goldman Sachs, Morgan Stanley, and Axis Capital as its underwriters.

    Bafna remarked on LinkedIn that the company has achieved a significant milestone in completing the India-focused reverse merger in an exceptionally swift timeline. He highlighted that this success reflects an adept understanding of technical processes, collaboration with the right partners, and effective execution and decision-making by a motivated team.

    Industry Comparisons

    With this strategic move, Zepto joins other notable companies such as Groww and PhonePe, who also relocated their bases from the US and Singapore, respectively. Several fintech firms, including Flipkart, KreditBee, Pine Labs, and Razorpay, have undertaken similar reverse flips. Pine Labs has already received final permission from Singaporean courts to change its headquarters to India.

    Tax Implications and Financial Overview

    Zepto has yet to disclose the tax implications of its reverse flip. For reference, PhonePe incurred a tax of Rs 8,000 crore, while Groww’s tax amounted to Rs 1,340 crore to facilitate this process. The total tax liability is contingent on the company’s valuation and the results of third-party audits.

    Recently, Zepto secured $350 million in a funding round led by Motilal Oswal Private Wealth, achieving a valuation of $5 billion. The company also raised an additional $1.35 billion in 2024, bringing its cumulative funding to $1.85 billion since its formation.

    Financial Performance

    In the fiscal year ending March 2024, Zepto reported a 2.2 times increase in revenue from operations, reaching Rs 4,454 crore compared to Rs 2,026 crore in FY23. During this same timeframe, its losses saw a modest reduction of 2%, totalling Rs 1,248.6 crore.

  • Zepto Executes Strategic Flip: From Singapore Back to India

    Zepto Wins NCLT Green Light for Innovative Reverse Merger

    Zepto Secures NCLT Approval for Reverse Merger and Domicile Transfer

    Quick-commerce company Zepto has received approval from the National Company Law Tribunal (NCLT) for its reverse merger, facilitating the company’s relocation from Singapore to India. This Mumbai-based firm has requested the amalgamation of Kiranakart Pte. Ltd with Kiranakart Technologies Private Limited.

    In an order dated January 9, 2025, the NCLT stated, “The Board of Directors of the Petitioner Company believes that the Scheme is in the best interests of the entity and its respective stakeholders, including shareholders, employees, and creditors.”

    Strategic Move Towards Initial Public Offering (IPO)

    This significant development represents a crucial milestone towards Zepto’s planned initial public offering (IPO) in India, which is anticipated to occur later this year. As reported by media sources, Zepto intends to raise between $400 million and $500 million through its IPO, having appointed Goldman Sachs, Morgan Stanley, and Axis Capital as its investment bankers.

    Recent Funding and Valuation Growth

    Zepto recently completed a $350 million funding round led by Motilal Oswal Private Wealth, resulting in a valuation of $5 billion for the company. In 2024, the firm secured an impressive $1.35 billion, which increases its total funding to $1.85 billion since its inception.

    Financial Performance Overview

    • For the fiscal year ending in March 2024, Zepto’s revenue from operations increased by 2.2 times, reaching Rs 4,454 crore, compared to Rs 2,026 crore in FY23.
    • During this period, the company’s losses slightly reduced by 2%, amounting to Rs 1,248.6 crore.

  • Zepto Executes Strategic Flip: From Singapore Back to India

    Zepto’s ₹5,747 Crore Investment: Will It Propel Revenue to ₹4,454 Crore by FY24?

    Zepto’s Unique Expansion in Quick Commerce: A Financial Insight for FY24

    By the end of the fiscal year in March 2024, Zepto has positioned itself as a significant contender in the rapid commerce arena, reporting impressive revenue growth while also managing to lower its losses by 2%.

    Key Financial Highlights:

    • Growth in Operational Revenue: In FY24, Zepto saw its operational revenue climb to ₹4,454 crore, marking a substantial rise of 120% compared to ₹2,026 crore in FY23.
    • Efficient Delivery System: This significant surge can be linked to Zepto’s streamlined delivery model which grants access to over 25,000 products across various categories in just ten minutes, supported by an extensive network of dark stores.

    Operational Enhancements:

    • Growth of Dark Stores: The company has expanded its presence with over 550 dark stores, handling around 700,000 orders daily.
    • Revenue from Product Sales: A significant 89.2% of total operational revenue originated from product sales. This sector also experienced critical growth of 120%, reaching ₹3,973 crore in FY24.
    • Diverse Income Sources: Additionally, Zepto has widened its income avenues with revenue from delivery services and various advertising strategies.

    Multiple Revenue Streams:

    • Earnings from Non-Operational Sources: Revenue from non-operational pursuits, such as interest on deposits, contributed ₹44 crore. This brings the total income for the fiscal year to ₹4,498 crore, up from ₹2,077 crore in FY23.
      • The cost of goods sold was a significant part of overall expenses, accounting for around 60.5%, which rose nearly 87% to reach ₹3,481 crore in FY24.
      • Salaries and employee-related expenses surged by approximately 62%, amounting to ₹426 crore; this total includes non-cash ESOP costs estimated at ₹74 crore.
      • The company undertook substantial investments to promote growth and visibility, with data technology spending increasing by roughly 65.7% to ₹116 crore, while marketing expenditures grew about 40.3% to ₹303 crore.

    Total warehousing costs stood at approximately ₹493 crore, and delivery costs approached ₹580 crore. These increases significantly contributed to an overall expense rise of about 71.6%, resulting in total expenditures of ₹5,747 crore for the year compared to ₹3,350 crore in the previous fiscal period. Even with these rising costs—initially perceived by some analysts as surpassing revenue expectations—Zepto achieved a slight reduction in losses, down 2% from ₹1,272 crore to ₹1,248 crore. Key performance indicators reflected a marginal improvement in return on capital employed (ROCE) at -119.3%, and EBITDA margins showed a slight enhancement to -23.81%. The expense-to-revenue ratio stood at ₹1.29. By the end of March, Zepto had substantial current assets of approximately ₹1,398 crore, including cash reserves and bank balances estimated at around ₹692 crore.

    Recently, Zepto secured $350 million, mainly through funding led by Motilal Oswal Private Wealth, bringing its valuation close to the $5 billion mark. Since its establishment, the company has amassed nearly $1.85 billion in total funding, including about $1.35 billion gathered earlier this year. According to Motilal Oswal’s market share report, Zepto holds approximately 29% market share, making it the second-largest player after Blinkit, which controls 46%, followed by Swiggy Instamart with around 25%.

    Under the leadership of Aadit Palicha, the company is set to launch “ZeptoCafe,” aimed specifically at food deliveries within ten minutes. This strategic initiative places Zepto in direct competition with rivals such as Swiggy’s Bolt and new entrants like ZingFood and Blinkit’s Bistro. Palicha has expressed aspirations to achieve profitability ideally before FY26 while also considering the option of going public in the latter half of the next calendar year.