Layoffs · Commerce & Consumer Brands
Zepto moves 300 employees to third-party firms
By Startup Enthusiast ·
- Date
- Company
- Zepto
- What it does
- 10-minute grocery delivery
- Kind
- Layoffs
- Founded
- 2021
What they do
Zepto delivers groceries and essentials within 10 minutes in Indian cities
What happened
Around 300 employees were removed from payroll and placed with third-party providers, part of a cost-cutting drive
Why it matters
The company has moved 1,000 staff off its payroll since early 2025, aiming to double business without adding headcount
The details
- Zepto moved around 300 employees off its payroll and placed them with third-party service providers.
- The impacted departments include operations, tech, category management, and finance.
- Since early 2025, the company has moved a total of 1,000 employees off its rolls.
- The company's current on-roll headcount is about 5,700.
- Automation of workflows, especially in customer support, led to the employee moves.
- Some tech and support staff were moved to quality assurance and quality check teams.
- Co-founder and CEO Aadit Palicha told employees on October 17 to 'obsess over costs' and be 'very frugal'.
The bigger picture
- The moves are part of a cost efficiency drive amid an intensifying competitive landscape.
- Zepto plans to cut AWS spend and third-party software, building dashboards in-house.
- The company aims to double business with the same headcount and treat hiring as a privilege.
About the business
- Zepto is a 10-minute grocery delivery platform operating in Indian cities.
- It delivers groceries, essentials, and other items directly to customers' doorsteps.
- The company competes with other quick-commerce players like Blinkit and Swiggy Instamart.
- Zepto recently raised $450 million at a $7 billion valuation.
- The valuation is 40% higher than its previous $5 billion valuation last year.
What happens next
- Zepto plans to cut spending on AWS and third-party software.
- The company will build dashboards in-house to reduce costs.
- It aims to double business with the same headcount and treat hiring as a privilege.
Founders
- Aadit Palicha, Co-founder and 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.
More on Zepto
- Zepto faces FSSAI penal action over misleading food claims24 September 2026 · Policy
- Zepto delays IPO to 2027 and reduces issue size12 September 2026 · IPO · ₹8,100 Cr
- Zepto partners with Databricks and VOKKA9 September 2026 · Partnership
- Zepto postpones IPO, shifts strategy1 September 2026 · Policy
- Zepto partners with VOKKA, Mia, Eveready for Rakhi and recycling29 August 2026 · Partnership
- Zepto launches premium grocery service named Select19 August 2026 · Launch
- Zepto delayed IPO after agreeing to close pre-IPO funding round17 August 2026 · Policy
- Zepto files IPO prospectus for fresh issue14 August 2026 · IPO · up to ₹8,010 Cr