The fast commerce sector in India is growing at a massive speed. The market is expected to grow 10–15 times by 2026, reaching nearly $5.5 billion. This growth is even faster than similar markets like China, making India one of the biggest global hubs for quick commerce businesses.
In this fast-changing environment, Zepto has become one of the biggest players, completely changing how Indians shop for groceries and daily essentials. Zepto has made quick, convenient shopping a daily habit for urban consumers.
India’s online grocery market is projected to grow from $8.82 billion in 2024 to around $37 billion by 2030, growing at a very strong CAGR of 44.9%. This kind of growth has created attractive opportunities for entrepreneurs who want to enter the quick commerce space by partnering with trusted brands like Zepto.
As of 2026, Zepto has 1000+ dark stores across more than 25 cities in India and fulfills over 300,000 orders every day. Zepto reported a 129% year-on-year surge in total sales, reaching ₹9,668.8 crore in FY25, up from ₹4,223.9 crore in FY24, showing strong business traction and demand. All these factors highlight the huge financial and business potential for entrepreneurs interested in entering this high-growth industry. To understand the investment details, setup model, and returns, read the complete article on Zepto franchise cost.
About Zepto
Founded in 2021 by young entrepreneurs Aadit Palicha (CEO) and Kaivalya Vohra (CTO), Zepto identified the massive untapped potential of India’s rapidly evolving quick-commerce ecosystem. What began as a small experimental startup in a college hostel quickly scaled into one of India’s most disruptive consumer-tech companies. Within just 17 months, Zepto achieved unicorn status, becoming one of the fastest startups in the Indian ecosystem to cross a $1 billion valuation. By 2026, the company has further strengthened its position as a dominant force in the ultra-fast delivery space, operating at a multi-billion-dollar valuation with nationwide reach.
The brand name “Zepto” is derived from zeptosecond—one of the smallest measurable units of time (10⁻²¹ seconds)—perfectly symbolizing the company’s obsession with speed. As of 2026, this highly optimized supply chain enables millions of rapid deliveries every day, fundamentally transforming how urban India shops for groceries and daily essentials.
| Parameter | Details (2026 Updated) |
|---|---|
| Company Name | Zepto |
| Founders | Aadit Palicha (CEO) and Kaivalya Vohra (CTO) |
| Establishment Year | 2021 |
| Headquarters | Bengaluru, Karnataka, India |
| Business Sector | Quick Commerce (10-minute delivery model) |
| Core Services | Groceries, vegetables, dairy products, personal care items, household essentials, snacks, beverages, private-label products |
| Number of Outlets (Dark Stores) | 1,000+ dark stores |
| Cities of Operation | 70+ cities across India |
| Annual Revenue (FY 2025–26 Estimated) | ₹9,500 – ₹11,000 crore |
| Company Valuation | Over $7 billion |
| Average Delivery Time | Under 9 minutes (fastest deliveries under 1 minute in select zones) |
| Daily Order Volume | 1.5 – 1.8 million+ orders |
| Product Catalog | 45,000+ products |
| Number of Employees | 10,000+ (including delivery partners and operations staff) |
Unique Selling Proposition
Zepto’s strong success within the Indian marketplace may be partially contributed to some main differentiators which make the firm stand apart from others:
- Ultra-Fast Delivery Infrastructure: The foundation of Zepto’s business model is its 10-minute delivery guarantee, which it achieves for more than 90% of orders. As CEO Aadit Palicha explains, the company has an average delivery time of only 8 minutes and 47 seconds – a standard that few competitors can match.
- Advanced Inventory Management: Every Zepto dark store holds around 3,000-4,000 items, with great care in selecting them on the basis of hyperlocal buying patterns. Zepto uses advanced AI-based inventory management systems that scan buying habits in particular neighborhoods.
- Customer-First Experience: Zepto has focused significant effort in creating an immersive user experience, from the streamlined mobile app to its lightning-fast delivery model. The organization operates with an unparalleled customer satisfaction score of 4.8/5, reflecting extremely positive orders accuracy rating of 99.2% as well as punctuality-based on-time delivery score of 98.7%.
- Dark Store Network Efficiency:,Zepto’s dark store strategy obviates the need for costly retail frontage but ensures maximum operational efficiency, unlike the conventional retail paradigm. Each dark store covers a specific catchment area of 2-3 kilometers in radius, allowing the company to achieve its delivery guarantee while minimizing logistics expense.
Why Choose the Zepto Franchise?
For business owners considering franchise possibilities, Zepto presents strong benefits that make its investment worth the Zepto franchise cost.
- Technology-Driven Competitive Advantage: Most of Zepto and Domino’s franchise cost in India go to its in-house technology infrastructure—an investment that generates massive competitive benefits. These comprise sophisticated inventory management systems that look at hyperlocal patterns of demand, AI-facilitated route optimization that upholds the 10-minute delivery commitment, and predictive analysis that reduces wastage.
- Market Leadership in a High-Growth Industry: Zepto has firmly established itself as one of the leaders in India’s fast-growing quick-commerce sector. From operating in just a handful of cities in 2021, the company has expanded to 70+ cities by 2026, with a strong presence across metros and high-potential tier-1 and tier-2 markets. This rapid yet controlled expansion reflects strong execution, rising consumer demand, and increasing brand preference in the instant-delivery category.
- Proven Unit Economics and Short Breakeven: Each Zepto dark store follows a replicable and data-driven business model. Operational breakeven is typically achieved within 6–8 months, with profitability often reached within 10–14 months, depending on location and order density. This accelerated path to profitability is driven by optimized store placement, high order frequency, and standardized operating processes—significantly lowering risk for franchise and growth partners.
- Strong Brand Recognition and Customer Loyalty: The firm’s outstanding service statistics—such as an average delivery time of 8 minutes and 47 seconds and a 99.2% order accuracy rate—have fostered strong customer loyalty. Internal statistics show that 76% of customers come back to make repeat purchases within 30 days, providing built-in demand for each new franchise location.
Understanding Zepto Franchise Models
Zepto provides two franchise models that cater to different investor profiles and risk tolerances:
Company-Owned & Franchise-Managed (COFM)
In the COFM model, Zepto retains ownership of the dark store infrastructure, inventory, and technology assets, but the franchisee operates day-to-day. This model minimizes the initial investment requirement for the franchisee while still giving access to Zepto’s established systems and brand equity.
Key Features:
- Lower initial investment (around ₹30-40 lakh)
- Lower risk profile with minimal capital exposure
- Zeo pays for the infrastructure, utilities, and rent
- Staffing and operations the responsibility of franchisee
- Revenue-sharing model wherein the franchisee gets 15-20% of net revenues
This would suit entrepreneurs wishing to have an operational role with minimal capital requirement and are OK with a partnership-type arrangement
Franchise-Owned & Franchise-Operated (FOFO)
The FOFO model gives full ownership and management control of dark store to the franchisee with Zepto supplying brand licensing, access to the supply chain, and operational guidelines. Though higher in initial investment, this model has higher potential for profit as well as autonomy.
Key Features:
- Higher initial investment (around ₹80-90 lakh)
- Full ownership of assets and operations
- More business decision control within brand parameters
- Higher potential for profit with 90-95% of the profit going to the franchisee after royalties
- Long-term asset value appreciation potential
- This model is attractive to investors who desire outright business ownership with the backing of Zepto’s tested systems and brand equity.
Zepto Franchise Cost Breakdown
The comprehensive breakdown of Zepto franchise cost varies by model and location tier (metropolitan, tier-1, tier-2 cities). The following represents average costs for a metropolitan location:
Initial Investment Components
| Investment Component | COFM Model (2026) | FOFO Model (2026) |
|---|---|---|
| Franchise / License Fee | ₹3 – 6 lakh | ₹6 – 10 lakh |
| Security Deposit | ₹6 – 10 lakh | ₹70 – 85 lakh |
| Brand Fee (Non-Refundable) | ₹1.5 – 2 lakh | ₹2 – 3 lakh |
| Infrastructure & Store Setup | ₹4 – 7 lakh | ₹40 – 75 lakh |
| Initial Inventory | Covered by Zepto | ₹40 – 55 lakh |
| Training & Onboarding | ₹5 – 7 lakh | ₹7 – 12 lakh |
| Total Initial Investment | ₹32 – 45 lakh | ₹85 – 1.1 crore |
Ongoing Operational Expenses
Zepto franchise cost for monthly operating generally comprise:
For COFM Model:
| Expense Head | Estimated Cost (₹) |
|---|---|
| Staffing Costs (30–35 staff) | ₹2.8 – 4 lakh |
| Management / Platform Fee | ₹60,000 – 90,000 |
| Utilities & Local Ops | ₹40,000 – 60,000 |
| Total Monthly Operating Cost | ₹3.8 – 5.5 lakh |
For FOFO Model:
| Expense Head | Estimated Cost (₹) |
|---|---|
| Staffing Costs (35–45 staff) | ₹3.5 – 5.5 lakh |
| Rent & Utilities | ₹1.8 – 3.2 lakh |
| Royalty Fee (5–7%) | ₹4 – 8 lakh |
| Marketing Contribution (2–3%) | ₹1.5 – 3 lakh |
| Technology & Platform Access | ₹30,000 – 45,000 |
| Maintenance & Miscellaneous | ₹60,000 – 1 lakh |
| Total Monthly Operating Cost | ₹11 – 20 lakh |
Financing Options for Zepto Franchise (2026)
To alleviate the huge Zepto franchise cost, the company has partnered with top financial institutions that provide specialized franchise finance:
Private Sector Banks:
Financing up to 65–70% of FOFO investment
Repayment tenure: 5–7 years
NBFCs (Franchise-Focused):
Faster approval, flexible collateral options
Slightly higher interest rates
Hybrid Funding Models:
Combination of bank loan + promoter equity
Commonly used for metro dark stores
Space and Location Requirements
Here is a summary of space and location considerations:
- Type of Space: A Zepto franchise will need a specialized space to be used as a micro-warehouse or fulfillment hub. The space must be usable for inventory control, order picking, packing, and dispatch operations. It would not be a big, sprawling warehouse but an efficient, small unit, potentially between 1000 and 2000 square feet, based on the service area and estimated order volume.
- Location Demographics: The location is of utmost priority. Zepto relies on dense order density, which can be found in areas with high residential and commercial density. Locations must be chosen by considering: Areas of high residential density to have a huge customer base within a short radius.
- Cost Implications: Location and space have a direct bearing on the Zepto franchise cost in a number of ways. Real estate prices differ greatly from city to city and locality to locality. In major urban centers, even smaller commercial properties can fetch high rentals. Monthly rental charges can vary between ₹50,000 and ₹1,50,000 or more, depending on the city, location, and size. Metro cities and high-end locations will obviously cost more.
- Security Deposits and Setup Fees: Entrance fees, broker charges, and expenses for transforming the premise into working environment needs (primary shelving, illumination, and minor adjustments, if any) will contribute towards initial investment. Estimate ₹1,00,000 to ₹3,00,000 as the initial setup expense.
Table: Space and Location Costs
Training and Support from Zepto
As personal information would constitute part of a binding franchise agreement, we can detail the kind of training and assistance a Zepto franchisee would receive:
Initial Training Program:
A solid induction process is required. Thorough training in Zepto working practices, order handling systems, inventory control, and delivery operations.
Regular Support and Materials:
Access to Zepto’s operational expertise, problem-solving help, and updates to best practices. This can include periodic audits or performance reviews to ascertain compliance with standards.
Cost Implication of Training and Support:
Zepto franchise cost of training and support are usually framed in two forms in a franchise agreement:
- Initial Franchise Fee: A part of the initial franchise fee is used to fund the first training program. This will vary from ₹3,00,000 to ₹7,00,000 or more depending on the degree of training and Zepto brand value.
- Continuing Royalty and Support Fees: The revenue of the franchisee is typically a percentage paid as a royalty and/or support fee. Royalty fees in franchise ideas are typically between 3% and 8% of gross revenue but can be more or less.
Table: Estimated Training and Support Costs
Profit Margins and ROI Analysis
Knowing the return on investment is essential when considering the Zepto franchise cost. According to current performance figures throughout the Zepto network:
Revenue Potential
- Average Daily Orders: 600-900 per established dark store
- Average Order Value: ₹415 (expected to hit ₹500 by end of 2025)
- Monthly Revenue (Established Store): ₹60-90 lakh
- Annual Revenue Potential: ₹7.2-10.8 crore
Profitability Metrics:
| Metric | COFM Model | FOFO Model |
|---|---|---|
| Monthly Revenue | ₹2.2 – 3.8 crore | ₹2.8 – 5.2 crore |
| Net Profit per Month | ₹12 – 28 lakh | ₹25 – 60 lakh |
| Net Margin | 6 – 10% | 10 – 16% |
| Break-Even Period | 6 – 8 months | 8 – 12 months |
| Full Investment Recovery | 18 – 24 months | 24 – 36 months |
| Expected Annual ROI | 28 – 40% | 35 – 55% |
Performance Factors
A few significant drivers determine the profitability profile of a Zepto franchise cost:
- Location Quality: Dark stores in high-density residential localities with affluent population tend to achieve breakeven 30% earlier compared to mixed-use locations.
- Operational Efficiency: Leading franchisees have inventory turnover rates of 15-18 times per month versus the network average of 12.
- Order Density: Mature dark stores have 6-8 orders per delivery partner per hour during peak hours, achieving maximum utilization of resources.
- Category Mix: Places with greater penetration of high-margin categories (personal care, household essentials) enjoy 2-3% extra gross margins.
- Wastage Control: World-class operations have less than 1.5% perishable wastage in comparison to 3-4% industry standard.
How to Apply for a Zepto Franchise
Initial Inquiry and Expression of Interest:
Visit Zepto’s website and look for a ‘Franchise’ or ‘Partnership’ section (if available). If there is one, fill out an online inquiry form expressing your interest. After that you need to submit the initial application form. It will ask for your general information.
Initial Screening and Eligibility Determination:
Zepto’s franchise team will then filter your application to assess your initial eligibility. They will decide your business sense, financial position, and fit with Zepto’s brand values and business needs.
Franchise Agreement and Disclosure Review:
If your completed application is accepted, Zepto will provide a Franchise Disclosure Document (FDD) or equivalent information package. (In mature franchise markets, FDDs are mandated by statute).
Read this document carefully, preferably with legal and finance consultants, to get used to all terms, conditions, obligations, and charges.
Understanding similar franchise models, such as Jio Mart Franchise Cost, can also give you insights into investment requirements and profitability.
Final Agreement and Payment of Franchise Fee:
Once all conditions are agreed upon, you will sign the franchise agreement. The initial franchise fee is normally payable at this time to lock in your franchise rights and initiate the training process.
Launch and Operations:
After successful training and installation, you will launch your Zepto franchise operations within your designated territory. Zepto’s continued support and monitoring will continue as you operate your franchise.
Zepto Franchise: Is It Worth the Investment?
If you’re considering entering the booming quick commerce space, Zepto is making a strong case for itself as a franchise worth watching. The company has demonstrated staggering growth since its launch, and its trajectory shows no signs of slowing down.
Revenue Growth That Turns Heads
Zepto’s growth trajectory has been exceptional since its inception in 2021:
- 2021–2022: Revenue of ₹142 crore (~$18 million)
- 2022–2023: Revenue surged to ₹2,024 crore (~$247 million), a remarkable 14x increase
- 2023–2024: Revenue doubled to ₹4,454 crore (~$541 million)
- 2024–2025: Revenue projected to cross ₹7,500 crore (~$910 million)
- 2025–2026 (Projected): Zepto is expected to approach ₹10,000 crore (~$1.2 billion) in revenue
This represents a compound annual growth rate (CAGR) of over 200%, vastly outpacing the overall Indian e-grocery industry CAGR of 31–32%. Such explosive growth has attracted serious investor interest, with total funding exceeding $900 million by 2025, positioning Zepto as one of India’s fastest-scaling unicorns in the quick-commerce sector.
Why the Zepto Franchise Model Looks Promising
Behind these numbers is a well-oiled expansion strategy that makes the franchise model increasingly attractive:
- Geographic Reach: Zepto has expanded from just 4 cities in 2021 to 70+ cities across India by early 2026, covering metros and high-potential tier-2 markets.
- Dark Store Network: The backbone of its hyperlocal delivery model now includes 1,000+ dark stores, enabling rapid 10-minute deliveries and efficient logistics.
- Order Volume: Daily orders have surged from 10,000 in 2021 to 1.5–1.8 million orders per day in 2026, reflecting strong market demand and brand trust.
- Customer Base: Zepto’s active user base has grown from 100,000 to over 20 million+ engaged customers, with high repeat purchase rates.
- Product Range: The product catalog has expanded from 1,000 SKUs to 45,000+ items, including groceries, personal care, household essentials, beverages, and more.
Market Positioning
Zepto has rapidly climbed to become a market leader in India’s quick commerce segment, now holding a 32% market share, just behind Blinkit (owned by Zomato) at 35%. This level of market dominance in just a few years suggests strong brand recall and customer loyalty—key advantages for any franchise partner.
Conclusion
Entering into a tie-up with Zepto on their franchise model calls for a massive investment of ₹80 lakhs to over ₹1.36 crores, but is rich in potential for returns given the fast pace at which the quick commerce sector is growing. With the Indian e-grocery space likely to grow at a CAGR of 35-40% up to 2026, reaching a market size of $25-30 billion, the opportunity for early players remains massive.
Zepto franchise cost guarantee that only capable entrepreneurs with sufficient financial resources and experience become franchisees. This rigorous process has guaranteed the company’s high service standards and high growth rate.
FAQs
Does Zepto offer financing for new franchisees?
Zepto does not offer direct financing but has tied up with HDFC Bank, Axis Bank, and State Bank of India to offer tailor-made loan packages to approved Zepto franchisees.
How many months on average does a Zepto franchise store break even?
Break-even is realized by most Zepto franchise stores in 18-24 months of operation.
Am I allowed to own more than one Zepto franchise store?
Zepto does permit multi-unit franchising for successful operators who have owned their first location for at least 12 months.
How does Zepto share revenues with franchisees?
Zepto’s revenue sharing structure typically is 15-22% gross sales, with specific percentages negotiated because of various factors
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