Layoffs · Commerce & Consumer Brands

Zepto temporarily closes Zepto Cafe stores due to low demand

By Startup Enthusiast · 18 November 2025

What they do

Zepto operates a 10-minute grocery delivery service using local dark stores across India

The company paused about 200 Zepto Cafe outlets due to weak customer demand and shifted staff to core roles

This move follows a recent $450 million funding round that valued the startup at approximately $7 billion

Zepto temporarily closed around 200 of its 600 Zepto Cafe stores across India.
The closures happened because of muted or inconsistent customer demand at those specific locations.
The company is moving cafe employees to picker and packer roles in nearby dark stores for grocery delivery.
There are no layoffs as the workforce is being moved to higher-demand segments.
In June 2025, the company had paused 44 cafes mostly in smaller North Indian cities.
About 80% of those earlier paused cafes resumed operations after demand stabilized.
This restructuring is a course correction and not a full exit from the cafe vertical.
Plans include potential revamps or relocations of cafes based on new demand insights.

Zepto aims to optimize resources by focusing on profit-generating segments like core grocery delivery.
The company is IPO-bound and managing operational efficiency across its verticals.

Zepto provides 10-minute grocery delivery through a network of local dark stores.
Zepto Cafe is a quick-service food vertical launched to leverage this existing delivery infrastructure.
The cafe service targets customers seeking quick ready-to-eat and snack solutions.
It promises 10-minute delivery for food items similar to its grocery service.
Competitors in this space include Blinkit's Bistro and Swiggy's Snacc.
Other quick food delivery startups also compete for the same urban consumer base.
The core business relies on dark store infrastructure for rapid logistics execution.

California Public Employees' Retirement System (CalPERS) (lead) — A major US public pension fund.

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.