Zepto Cafe’s network has fallen to around 250–350 locations from 850–900 in 2024 as Zepto focuses on cost optimisation and better-performing locations.

Zepto is scaling back the footprint of Zepto Cafe as part of its broader cost optimisation strategy. The cafe business, which had around 850–900 locations in 2024, now operates roughly 250–350 locations, with the company focusing on locations that are performing well.

Zepto Cafe’s contribution to revenue has also declined to around 2–3% from 8–9% earlier. The company had expanded the cafe business with a similar menu across locations, but the strategy did not work equally well across markets. This resulted in Zepto marking down around ₹8 crore of inventory in FY26, compared with ₹61 crore in FY25.

As part of its broader cost-control measures, Zepto has also increased basket sizes and reduced heavy discounts.

Zepto Plans ₹1,000 Crore Pre-IPO Fundraise

Alongside the cost optimisation measures, Zepto is planning to raise around ₹1,000 crore from existing investors through a pre-IPO funding round. The proposed fundraise is expected to value Zepto at around $4–4.5 billion, compared with its previous valuation of $7 billion.

Zepto is looking to re-plan its IPO timeline and target the public markets after another 2–3 quarters. At its recent AGM, shareholders approved the proposal to raise funds through Compulsorily Convertible Preference Shares (CCPS), with around 99.99% of votes in favour.