Launch · Commerce & Consumer Brands

Zepto expands dark stores in Tamil Nadu and hits cafe order milestone

By Startup Enthusiast · 24 February 2025

What they do

Zepto operates quick commerce delivery through dark stores across India

The company is opening over 20 new dark stores in Tamil Nadu districts

Zepto Cafe reached 1 lakh daily orders with a $100M annualized run rate

Zepto is expanding its dark store network beyond Chennai into Tamil Nadu.
The startup plans to open 20+ dark stores in key Tamil Nadu districts.
These new locations will cover areas like Coimbatore, Madurai, and Salem.
Each dark store serves customers within a 2-3 km radius for fast delivery.
Zepto promises 10-minute delivery times using partners traveling at high speeds.
The company sources coconuts and vegetables from 100+ farmers in specific regions.
Zepto Cafe launched as a standalone app in December 2024 to sell food.
The cafe business hit 1 lakh orders per day by February 2025.

Zepto Cafe achieved a $100 million annualized gross merchandise value run rate.
The cafe segment shows a steady-state gross margin of approximately 50%.
The move comes as the industry faces significant cash burn pressures.
Competitors like Blinkit and Swiggy are also testing similar food models.

Zepto operates a quick commerce model delivering groceries and essentials rapidly.
It uses a network of dark stores located close to urban customers.
The company aims to deliver items within 10 minutes of ordering.
Zepto Cafe offers ready-to-eat food via a dedicated mobile application.
The business relies on local sourcing from farmers for fresh produce.
FY24 operating revenue grew 120% year-on-year to INR 4,454 crore.
The company competes directly with Swiggy Instamart and Zomato Blinkit.
Expansion targets include tier-2 cities outside major metropolitan hubs.
Partners drive deliveries at speeds of 15-20 km/h to meet promises.

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.