The fast commerce sector in India is growing at an unprecedented scale, with the market expected to grow 10-15 times by the year 2025 to an impressive $5.5 billion. This rampant growth is even overtaking its peer markets in China, making India a global hotspot for this business.
In this rapidly growing era, Zepto has emerged as a giant, transforming the way Indians are buying groceries and essentials with its ground-breaking 10-minute delivery solution.
India’s online grocery market is estimated to grow from $8.82 billion in 2024 to around $37 billion by 2030, a stunning compound annual growth rate (CAGR) of 44.9%. This phenomenal growth has opened up lucrative avenues for entrepreneurs to enter the quick commerce business through franchise tie-ups with reputable brands such as Zepto.
As of 2025, Zepto has more than 650 dark stores in over 25 cities in India, fulfilling more than 300,000 orders per day. The company generated revenues of INR 4,454 crore in 2024, showing the huge financial potential for potential franchise partners who are ready to invest in this thriving industry. To know more about Zepto franchise cost read the complete article.
About Zepto
Zepto was started in 2021 by young founders Aadit Palicha (CEO) and Kaivalya Vohra (CTO), who saw the untapped potential of India’s fast commerce market. What started as a small startup in a college hostel soon turned into a unicorn firm, reaching a valuation of over $1 billion in just 17 months – one of the quickest such turnarounds in the Indian startup ecosystem.
The brand name “Zepto” from a very small unit of time (a zeptosecond is equal to 10-21 seconds) aptly captures the ultra-rapid delivery pledge of the brand. Powered by a chain of strategically positioned dark stores and mini-warehouses, Zepto has rewritten the rules of grocery shopping for customers with its predictable 10-minute delivery guarantee.
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.
Revenue Growth In India
Financial Performance (2021-2025)
- 2021-2022: In its first year of operations, Zepto saw around ₹142 crore ($18 million) revenue
- 2022-2023: Revenues jumped to ₹2,024 crore ($247 million), a record 14x year-over-year growth
- 2023-2024: The firm clocked revenues of ₹4,454 crore ($541 million), doubling its last year’s performance
- 2024-2025: Projections are that Zepto will breach the ₹7,500 crore ($910 million) mark, sustaining its steep growth trajectory
The firm’s compound annual growth rate (CAGR) over this period is in excess of 200%, more than double the CAGR of the overall e-grocery industry at 31.3%. This remarkable performance has been enough to attract huge investor attention, with Zepto raising funding rounds worth more than $900 million up to 2024.
Market Expansion Metrics
Zepto’s top-line growth has been driven by aggressive market expansion initiatives:
- Geographic Coverage: Diversified from 4 cities in 2021 to more than 25 cities as of early 2025
- Operational Footprint: Expanded dark store network from 45 in 2022 to over 650 as of January 2025
- Order Volume: Expanded from handling about 10,000 daily orders in 2021 to over 300,000 in 2025
- Customer Base: Grew from a starting point of 100,000 users to over 10 million active users
- Product Catalog: Expanded from 1,000 SKUs to over 25,000 products across categories
This aggressive growth has made Zepto a market leader in India’s quick commerce segment, with the current market share of around 32% – second only to Zomato-owned Blinkit at 35%.
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 emerged as a market leader in India’s fast commerce space, with a current market share of around 32%. The firm’s rapid expansion—from 4 cities in 2021 to more than 25 cities by 2025—reflects its operational efficiency and market popularity.
- Proven Unit Economics and Short Breakeven: Every Zepto dark store exhibits a repeatable growth path, generally realizing operational break even in 5-7 months and profitability within months 10-12. This faster journey to profitability stems from the data-driven site selection approach of the company and the streamlined operational paradigms, minimizing risk substantially for franchise 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
Ongoing Operational Expenses
Zepto franchise cost for monthly operating generally comprise:
For COFM Model:
- Staffing Costs: ₹2.5-3.5 lakh (35+ staff)
- Management Fee: ₹50,000-75,000
- Miscellaneous Operational Expenses: ₹30,000-50,000
- Total Monthly Operating Costs: ₹3.3-4.75 lakh
For FOFO Model:
- Staffing Costs: ₹3-5 lakh (35+ staff)
- Rent & Utilities: ₹1.4-2.7 lakh
- Royalty Fee (5-7%): ₹3-6.3 lakh
- Marketing Contribution (2-3%): ₹1.2-2.7 lakh
- Technology Access Fee: ₹25,000-35,000
- Maintenance & Miscellaneous: ₹50,000-80,000
- Total Monthly Operating Costs: ₹9.35-17.95 lakh
The huge disparity in monthly charges among models is made up for by the revenue-sharing arrangement in the COFM model against the greater profit retention in the FOFO model.
Financing Options
To alleviate the huge Zepto franchise cost, the company has partnered with top financial institutions that provide specialized franchise finance:
- HDFC Bank: Financing up to 70% on FOFO model with 5-7 year tenors
- ICICI Bank: Specialized franchise loan scheme with competitive interest rates
- Franchise-specific NBFCs: Customized finance options with easy collateral conditions
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:
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.
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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