Zepto To Spin Off Cafe Delivery Into New App 'Zepto Cafe'

Quick commerce delivery platform Zepto is set to launch a separate app for its popular cafe segment 'Zepto Café' after seeing a massive order surge, co-founder Aadit Palicha said in a post on X.

The new app will be launched next week, but the Day 1 of the launch might not be perfect, Palicha said in the post.

"We're launching a separate app for Zepto Café next week! The team is shipping an MVP and iterating quickly, so it may not be perfect on Day 1, but it's worth it to launch fast," he said. "Café is scaling rapidly: we're launching 100+ Cafés a month and already clocking 30K orders/day."

Zepto, headquartered in Mumbai, was founded in July 2021 by Aadit Palicha and Kaivalya Vohra. As of August 2024, the company is valued at over $5 billion and operates more than 250 dark stores across ten major metropolitan cities in India.

In August 2024, Zepto raised $340 million in a follow-on funding round, maintaining the valuation of $5 billion. This funding round followed its earlier $665 million Series F round, which valued the company at $3.6 billion.

Zepto has outlined its path to becoming a fully Indian-owned company, with plans to reach profitability by fiscal year 2025-26. Recently Zepto's CEO and co-founder Aadit Palicha expressed optimism about the possibility of an initial public offering (IPO) in 2025.

Quick commerce (Q-commerce) is a fast-evolving sector within the e-commerce industry that focuses on delivering products, typically groceries, essentials, and other daily needs, to customers within a very short time frame, usually under 20 minutes. Unlike traditional e-commerce, which may take hours or days for delivery, Q-commerce leverages local warehouses or "dark stores" and advanced logistics to ensure hyper-local, rapid deliveries.