Launch · Commerce & Consumer Brands
Zepto launches dedicated cafe app for food
By Startup Enthusiast ·
- Date
- Company
- Zepto
- What it does
- Quick commerce grocery delivery
- Kind
- Launch
- Founded
- 2021
What they do
Zepto delivers groceries and quick commerce items in India
What happened
The company is launching a separate app for its Zepto Cafe service offering 10-minute food delivery
Why it matters
This move aims to increase average order values through beverage and snack add-ons to existing grocery orders
The details
- Zepto is launching a separate application for its Zepto Cafe service next week.
- The new app allows users to order coffee, sandwiches, and other food items.
- Customers can also place these orders through the main Zepto grocery application.
- CEO Aadit Palicha announced the launch on the social media platform X.
- Zepto Cafe was originally launched in 2022 as part of the company's expansion strategy.
- The service currently generates approximately 30,000 orders every single day.
- Zepto is expanding its physical cafe network at a rate of more than 100 locations per month.
- The cafe business has reached an annualized revenue run rate of Rs 160 crore.
The bigger picture
- Zepto aims to reach Rs 1,000 crore in annual revenue from cafes by 2026.
- The cafe service helps increase the average order value for grocery customers.
- Beverages and snacks serve as popular add-ons to standard grocery purchases.
- Zepto holds a 29% market share in the Indian quick commerce sector.
- Blinkit leads the market with 46% share while Swiggy Instamart holds 25%.
About the business
- Zepto operates as a quick commerce platform delivering groceries within minutes.
- The company offers both branded and non-branded consumer goods to customers.
- Zepto Cafe provides hot food items like coffee and sandwiches alongside groceries.
- Zepto recently raised $350 million led by Motilal Oswal Private Wealth.
- The company achieved a valuation of $5 billion during this funding round.
- Zepto raised a total of $1.35 billion in funding throughout 2024.
- Total capital raised since inception stands at $1.85 billion.
- The company focuses on increasing customer lifetime value through cross-selling food items.
What happens next
- Zepto plans to achieve Rs 1,000 crore in cafe revenue by 2026.
- The company will continue opening new cafe locations at a rapid pace.
Founders
- Aadit Palicha, CEO
- Kaivalya Vohra, Co-founder
About Zepto
- Product
- A rapid-delivery app for groceries and everyday essentials.
- Customers
- Consumers ordering groceries and essentials online.
- How it makes money
- It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
- What sets it apart
- It was built as a quick-commerce native company from day one.
- Operations
- Operates dark-store based 10-minute delivery across multiple Indian cities.
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