Have you ever shopped for groceries and had them delivered to your doorstep without getting a chance to put your phone down? If you reside in a big city of India, you must have felt the wonder of a 10-minute delivery. At the head of this charge is a company that has already become a household name in a surprisingly short time: Zepto.
The rate at which Zepto and other quick commerce companies have expanded is simply amazing. Individuals are busy and convenience is king. This change in consumer behaviour has presented a huge business opportunity. Think of being part of this revolution, of having a share in the action. That is why the search of a “Zepto franchise” has increased dramatically.
To get a feel of the magnitude of this wave, here are some figures:
- Market Explosion: The Indian quick commerce market is burning. It is estimated to grow to a massive $5.5 billion by 2025. That is a huge pie, and everybody is interested in a piece of it.
- Zepto Unicorn Status: Zepto raised $200 million in August 2023, which took its valuation to $1.4 billion. It was the first Indian unicorn (a startup worth over $1 billion) of 2023, which is an indicator of great investor trust.
- Unbelievable Speed: Zepto is a promise of its essence. The company has an average delivery time of 10-12 minutes which has totally transformed the customer expectations.
- Massive Scale: Zepto has hundreds of so-called dark stores in major cities like Mumbai, Delhi, Bengaluru, Chennai, and others and processes millions of orders each month.
When it grows so electrifyingly, one is bound to ask the question, “How can I get involved? How much does the Zepto franchise cost?” This guide will resolve all your queries. We will dissect everything including the business model of the company, the estimated costs and profits and above all, how you can partner with Zepto.
What is Zepto?
Zepto is an Indian fast commerce enterprise that has transformed online grocery business. Zepto is at its core a grocery delivery service and thousands of other everyday necessities that are delivered to your door in approximately 10 minutes. This was established in the year 2021 by two young business people, Aadit Palicha and Kaivalya Vohra.
The secret in its blistering pace is its unusual business model that uses a network of dark stores. They are small, strategically placed warehouses or fulfillment centers in high-density residential areas that are non-public facing. All the dark stores are optimized to pack orders fast. When you make an order on the Zepto app, it is sent to the closest dark store, which then packs it and sends it off with a nearby delivery rider.
This model enables Zepto to provide the unmatched convenience, satisfying the immediate needs of customers, whether it is a packet of milk or last-minute cooking ingredients. It has become one of the market leaders in the emerging quick commerce market in India, with new benchmarks in speed and efficiency of delivery.
The “Dark Store” Model
Unlike a conventional supermarket such as Big Bazaar or a local kirana store, you cannot enter a Zepto store. Zepto runs on a system of so-called dark stores. They are small warehouses or distribution centres situated in strategic areas in dense residential areas.
This is how it works:
- These dark stores are not accessible to the population. They are strictly storage and order packing.
- Dark stores carry only a few thousand to several thousand of the most popular items.
- When you make an order through the Zepto app, the order is directed to the closest dark store.
- In the store, your items are packed by the so-called packers. The design is made to be less customer-browsing friendly and more speedy.
- A delivery rider, who is already waiting in the vicinity, takes the packed order and rushes to your destination.
This whole process, starting with you hitting the confirm order button, and ending with the doorbell ringing is all supposed to take you a total of 10-15 minutes.
How is Zepto Different?
- Speed: Speed is the number one differentiator. BigBasket or Grofers (now Blinkit) started with next-day or scheduled delivery. Zepto was designed to operate in 10-minute delivery.
- Inventory: Zepto keeps its own inventory in its dark stores. This is unlike platforms such as Dunzo, which can be run on a pick-up-from-local-stores basis. Through managing the inventory, Zepto can manage product availability and quality.
- Focus: Zepto is laser-focused on grocery and daily needs. Although other platforms may offer a broader variety of products, the specialization of Zepto allows them to streamline their operations to be fast and efficient.
Zepto Founder and Company Overview
The history of Zepto is as impressive as its rise. It is the story of two young and ambitious friends who have left one of the most prestigious universities of the world to pursue a big idea.
Zepto was established in 2021 by Aadit Palicha and Kaivalya Vohra.
Yes, 2021! Both the founders were aged 19 years. The two were studying computer science at Stanford University when the pandemic forced them to move back to Mumbai. Trapped in their houses, they felt the inconvenience of waiting hours or even days before their groceries could be delivered.
They identified an obvious market gap. Although other services were available, none could be used to deliver essentials in a short period of time. They thought that they could address this issue with technology and a dense network of micro-warehouses. They left Stanford and Zepto was created.
The concept was soon of interest to large investors The company has acquired hundreds of millions of dollars in funding by the leading venture capital firms such as Y Combinator, Glade Brook Capital, and Nexus Venture Partners. This capital has enabled Zepto to grow its dark stores network rapidly, invest in technology and develop a robust workforce. Both Aadit Palicha and Kaivalya Vohra are today among the richest and youngest self-made entrepreneurs in India.
Why Invest in a Zepto Franchise?
Why partner with Zepto? Before we begin with the zepto franchise costs, it is important to discuss why a partnership with a brand like Zepto is so appealing. Here is why a franchise would be a golden business opportunity in case Zepto were to do it:
- Booming Market: Quick commerce is more than a trend, it is a paradigm shift in shopping. You would be entering an industry with a massive growth potential.
- Brand Recognition: Zepto is an already strong and reliable brand. You would not have to take years to establish a name. Customers are already familiar and like the service.
- Tested Business Model: The dark store model has been tested. Zepto has solved the technology, supply chain and operational logistics. You would just be slotting into an existing successful system
- Tech Support: A large factor of Zepto is its advanced technology. As a partner, you will be able to use their app, inventory management software, and delivery tracking systems.
- Supply Chain and Sourcing: Zepto has forged connections with farmers, brands, and distributors. This would imply that you would enjoy access to quality products at competitive prices without having to go through the hustle of sourcing them.
- Training and Operational Guidance: A good franchisor will give a lot of training on how to operate the business and manage the staff and maintain the quality standards.
Zepto Franchise Types
There are usually two prevalent models in the world of franchising. It is necessary to know them, because it helps to understand the way such collaborations are carried out.
- COFM (Company Owned, Franchise Managed): The dark store and all the assets would be owned by the company (Zepto). They would use the money to establish the shop. The franchisee (you) would be in charge of the day to day running of the business, staff, stock and customer care. You would receive a proportion of the income or a management fee.
- FOFO (Franchise-Owned, Franchise-Operated): This is the more traditional franchise. In this case, you (the franchisee) use your own money to establish the dark store. You are the owner of the asset and have the responsibility of the investment as well as the day to day operations. In exchange, you earn a higher share of the profits, less a royalty fee that you pay to the company (Zepto).
A Very Important Clarification
We have now reached the most important point in this article. By the end of 2025, Zepto is a COCO business.
This implies that Zepto has all its dark stores under its ownership and management. They do not presently have any public franchise opportunities
Why do we speak of zepto franchise costs? Since the demand and search for such information is huge, and it is necessary to understand how much it would cost to establish such a business. The sections below are a hypothetical analysis of industry standards to set up quick commerce dark stores. This will give a realistic view of the investment that will be needed in case Zepto or a similar company will be offering a franchise in the future.
Zepto Franchise Cost and Profitability: 2025 Review
Suppose Zepto has chosen to adopt a FOFO (Franchise-Owned, Franchise-Operated) model of its dark stores. How would the investment be? The following is a list of the possible dark store zepto franchise costs.
Initial Investment Required:
Establishing a dark store is a capital intensive process. The overall initial investment would be estimated somewhere between 25 Lakh and 40 Lakh. This may differ widely, depending upon the city, location and size of the store.
Here’s where that money would go:
- Franchise Fee: This is the fee that would be paid to Zepto once to use their brand name, business model and technology. This may be between ₹3,00,000 and ₹5,00,000.
- Rent and Security Deposit: The dark stores must be located in the best residential quarters, where rent can be high. It would require a room of 1,500 – 3,000 sq. ft. The deposit itself may be up to ₹200,000-₹600,000.
- Interior and Store Set up: This is a big zepto franchise cost. It consists of installing storage racks, cold storage facilities (freezers and chillers) of dairy and frozen foods, packing facilities, and office furniture. This may cost between ₹8,00,000 to ₹15,00,000.
- Technology and Systems: This consists of computers, barcode scanners, CCTV cameras, billing software, and linkage to Zepto central tech platform. It will cost between ₹1,00,000 and ₹2,00,000.
- Initial Inventory: You have to fill the store with thousands of products before you can begin to operate. This initial purchase of stocks would be a huge expense, probably ₹8,00,000 to ₹12,00,000.
- Licenses and Permits: Some of the licenses you will require are FSSAI, Trade License, and GST registration. The price of these may be between ₹50,000 and ₹1,00,000.
- Working Capital: This is the amount of money that you will need to have at hand to run day to day activities (salaries, utility bills, restocking) until the business becomes self-sustaining in a few months. It is recommended to have a buffer of ₹2,00,000 to ₹4,00,000.
Zepto Franchise Cost Breakdown Table (Estimated)
| Expense Category | Lower End Estimate (₹) | Higher End Estimate (₹) |
| Franchise Fee | 3,00,000 | 5,00,000 |
| Rent Security Deposit | 2,00,000 | 6,00,000 |
| Store Setup & Interiors | 8,00,000 | 15,00,000 |
| Technology & Systems | 1,00,000 | 2,00,000 |
| Initial Inventory | 8,00,000 | 12,00,000 |
| Licenses & Permits | 50,000 | 1,00,000 |
| Working Capital | 2,00,000 | 4,00,000 |
| Total Estimated Investment | ₹24,50,000 | ₹45,00,000 |
Profitability and Return on Investment (ROI)
So the investment is high. The big question is how much money can you get?
The grocery business is a volume and low margin game.
Projected Revenue: Revenue is purely based on the volume of orders you will take in a day and the average value of orders. A dark store in a metropolis such as Mumbai or Bengaluru has the potential to handle between 500 and 1,500 orders a day. With an average order value of 400, the daily revenue may be between ₹2,00,000 and ₹6,00,000. This equates to 60 Lakh to 1.8 Crore monthly revenue.
Profit Margins: Here is where it gets tough. Gross margin on groceries is normally low. Once the products have been paid, the remaining is normally 15-20 percent. All your operational costs have to be deducted out of this:
- Rent
- Salaries of the staff (store manager, packers, cleaners)
- Power bills (cold storage is an electricity guzzler)
- Royalty to Zepto (normally 2-5% of revenue)
- Marketing fees
- Product wastage
- Miscellaneous expenses
All these deductions lead to a net profit margin of a dark store to be between 2 to 5 percent.
Therefore, 3 percent net margin would translate to 3,00,000 profit each month on a monthly revenue of 1 Crore.
Factors Influencing ROI
The Return on Investment (ROI) would rely on a number of factors:
- Location: A store in a high density place with numerous apartment units will receive more orders.
- Operational Efficiency: The way you handle your inventory to minimize wastage and the efficiency of your staff can have a profound effect on your costs.
- This is the most important factor: the volume of orders. Your profitability directly depends on the amount of orders that you can fulfill.
- Customer Service: Satisfied customers will give repeat orders which is the blood of this business.
Using these figures, the break even point may be achieved in 2 to 4 years, which is quite normal to a business with such investment.
How to Apply for a Zepto Franchise
Zepto is not offering any franchises at the moment, and thus no application form or procedure is available. Be extremely cautious of any websites, consultants, or agents who would like to charge you a fee in order to secure you a Zepto franchise. These are probably scams
But in case you are serious about such an opportunity, here is what you can do to keep yourself prepared:
- Follow Zepto Official Channels: Follow Zepto closely on their official LinkedIn page and their official website (zeptonow.com). This is the first place they will announce a franchise program when they ever decide to do so.
- Register Your Interest: You can make an attempt to contact their business development or corporate office using the official contact details. Show your interest in partnering opportunities. This may not result in anything at the moment but at least you are on their system in case of any future programs.
- Plan Your Budget: Get to know the financial burden that you are going to take with the help of the cost breakdown above. Get serious and begin planning your finances so that you are ready to take advantage of an opportunity when it presents itself.
Suppose that there were a franchise process, it would probably entail the following steps:
- Completing an extensive online application form
- The first filtering by Zepto team
- A personal interview to talk about your personal background in business and your financial status.
- Selection and approval of sites.
- Signing a franchise agreement and paying a franchise fee.
- In training and initiating set up.
Important Documents That You Would Require
- Identity evidence (Aadhaar Card, PAN Card)
- Address Proof
- Business and IT returns over the past 2-3 years
- Bank statements to demonstrate financial fitness
- Information about the property (in case you have a prospective site)
Although a franchise is not an option at present, other real and immediate ways exist to partner with Zepto.
Zepto Seller Registration
Do you have a local brand or produce products that would be ideal to Zepto customers? It is an excellent idea to be a seller on Zepto. This will enable you to advertise your products in their app and access thousands of customers in your city.
How To Become Zepto Seller:
- Reach out to the Sourcing Team: The initial step is to contact the Zepto business or sourcing team. This is usually possible by writing an email to their head office or identifying the right contacts on business networking sites such as LinkedIn.
- Submit Your Product Details: You will have to submit a proposal with some details of your product, brand, price, and production capacity.
- Quality and Compliance Check: Zepto observes stringent quality standards. Your products and your plant may be checked in terms of quality. All the licenses required will be needed.
- Negotiate Terms: Should your product be a good fit, you will negotiate the commercial terms, including pricing, supply logistics and payment cycles.
- Onboarding: This is the process of onboarding your products into the Zepto system and stocking them in their dark stores once the agreement is signed.
Key Requirements for Sellers:
- GST Registration
- FSSAI License (for food products)
- A registered business entity (e.g., proprietorship, partnership, Pvt. Ltd.)
- PAN Card
- Bank account details
Zepto Delivery Partner Program
The other great opportunity to be a part of the Zepto ecosystem is to join as a delivery partner. Zepto is in constant need of riders given the large number of orders.
How to become a Delivery Partner:
- Install the App: Get the Zepto Delivery Partner app on the Google Play Store.
- Register: Enter your basic information such as name, phone number and city.
- You will be required to upload clear copies of your:
- Aadhaar Card
- PAN Card
- Driver’s License
- Vehicle Registration Certificate (RC)
- Bank Account Details (payments)
- Full Training: You will be required to undergo a brief online training which will explain how the application works, the delivery procedure and the company policies.
- Get Onboarded: After the verification of the documents, you can log in and start accepting orders.
Earnings and Incentives: Delivery partners receive payment on a per-order basis. The income varies with the distance and time. Zepto also provides different incentives, bonuses when a specific number of orders are made and surge pay during peak hours.
Zepto vs Blinkit
Zepto’s biggest rival in the quick commerce space is Blinkit franchise (formerly Grofers) which is now owned by Zomato. How do they compare?
| Feature | Zepto | Blinkit |
| Founders | Aadit Palicha, Kaivalya Vohra | Albinder Dhindsa, Saurabh Kumar |
| Parent Company | Standalone (Zepto) | Zomato |
| Delivery Speed | Claims 10-minute average | Claims 10-minute average |
| Franchise Model | COCO (Company-Owned) | Primarily COCO (Company-Owned) |
| App Features | Clean, fast, and easy to use. Focus on core grocery. | Integrated with Zomato. Broader product range in some areas. |
| Growth Potential | Rapidly expanding, strong investor backing. | Massive backing and synergy from Zomato’s ecosystem. |
The two platforms are extremely popular and follow a similar dark store model. Neither of them currently sells franchise opportunities to the general public, instead preferring to keep a tight reign on their operations in order to guarantee speed and quality.
Contact Details
To contact Zepto, whether it is to seek customer support, or to request information as a potential business partner, here are the official channels. These are not franchise applications (please note).
- Official Website: https://www.zeptonow.com/
- Customer Support Email: support@zeptonow.com
- Corporate Office Address: Level-5, Plot No. 78, D-Block, C-Wing, Near WeWork, GTB Nagar, Sion, Mumbai – 400037, Maharashtra, India.
Conclusion: Is It Profitable?
We can now turn to our principal question. Is Zepto-like business profitable? Yes, in a huge scale but to an enormous extent.
The quick commerce model is constructed on the premise of operational excellence, leading technology, and high order volumes. Although on individual orders of 400 rupees, the profit may only be 15-20 rupees, when multiplied by thousands of orders per day, across hundreds of stores, the profit is huge and lucrative.
To the individual investor, the entry is high. The investment needed is large and the operations are very complex. Probably that is why Zepto and Blinkit have not yet outsourced their dark stores to franchisees, to ensure a steady customer experience.
Although you cannot purchase a Zepto franchise cost now, the potential of the quick commerce market is unquestionable. With the knowledge of the (hypothetical) costs and business model, you are in a better position to take on any future partnership opportunities that may arise. Now, joining the 10-minute delivery revolution is a great, practical step to become a seller or a delivery partner.
FAQs
1. Does Zepto offer franchises in India?
No. By the end of 2025, Zepto is a company-owned, company-operated (COCO) model. They do not sell any franchises to the population. It would be wise to be wary of third parties who purport to be different.
2. What is the franchise cost of a Zepto dark store?
The approximate cost of a Zepto dark store franchise would be between 25 Lakh and 40 Lakh. This would take care of the franchise fee, store set up, initial inventory and working capital.
3. How do I partner with Zepto?
You can not open a franchise, but you can partner with Zepto in two primary ways: you can become a seller by registering on their app and listing your products there, or you can become a delivery partner and join their fleet.
4. Who is the founder of Zepto?
Zepto was established in 2021 by two dropouts of Stanford University, Aadit Palicha and Kaivalya Vohra, at the time when they were both 19 years old.
