Quick-commerce platform Zepto has temporarily shut 40 of its cafés in and around Delhi as it restructures its supply chain to accommodate rising demand, MoneyControl reported.
According to sources, the closures affect locations in Delhi NCR, Agra, Meerut, Haridwar, Gorakhpur, Mohali, Amritsar and Ghaziabad. Operations are expected to remain paused until September while the company resolves supply-chain challenges.
“Zepto had been experiencing unprecedented demand that was not matched by vendor availability. To ensure quality and service standards are upheld, the company is temporarily halting operations at 40 stores in and around Delhi,” sources told PTI.
“Fewer than 100 employees have been affected by this decision. Those impacted have been offered the choice to relocate to nearby stores or kitchens, as the company plans to retain them until operations resume around September,” the source added.
Zepto’s café division, which operates over 1,000 locations, was processing nearly 100,000 orders daily and was on track to achieve US$100 million in annualised gross merchandise value (GMV), according to CEO Aadit Palicha. He added that the unit consistently maintained a 50 per cent gross margin.
However, the pause has sparked concerns about the division’s ability to sustain its growth trajectory. Employees revealed that most kitchen staff were transferred to other outlets, but 15 resigned after declining to relocate. The development was first reported by NDTV Profit.
Zepto Financials
Zepto spent between ₹115 crore and ₹120 crore on staff salaries in March and ₹105 crore–₹110 crore in January and February. Eternal CEO Deepinder Goyal claimed in March that Zepto was burning through approximately ₹2,500 crore per quarter; however, Aadit Palicha refuted this as inaccurate.
Meanwhile, Zepto’s delivery executives in Hyderabad have entered an indefinite strike, which entered its fifth day today. The workers are protesting against the company’s proposed reduction in delivery fees. Telangana Gig and Platform Workers’ Union (TGPWU) president Shaik Salauddin told Inc42 that Zepto reduced its per-delivery fee from ₹35 per order in April 2024 to ₹10–₹12 per order in May. “Hyderabad managers have informed us that Zepto has no plans to increase the fees,” he added.
The TGPWU has filed a formal complaint with Additional Labour Commissioner E. Gangadhar, urging government intervention over alleged ongoing labour-rights violations by the company. Workers across multiple dark stores in Hyderabad claim Zepto has ignored repeated requests for dialogue.
These developments coincide with Zepto’s preparations for a public listing, with reports suggesting the company is targeting a stock-market debut by early 2026.
