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Zepto Extends its Cafe Services to Key Cities

By Consultants Review Team Monday, 18 November 2024

In addition to announcing the launch of its cafe service in key cities, quick commerce platform Zepto stated on Monday that it hopes to reach a revenue run-rate of Rs 1,000 crore by 2026.

According to a corporate release, it will be served through more than 120 cafes at locations in Bengaluru, Delhi, Mumbai, and shortly Hyderabad, Chennai, and Pune.

"We are seeing great client satisfaction since we have perfected 10-minute delivery with superior meal preparation techniques. Our team has spent the last year carefully investigating and locating cutting-edge equipment for our cafes, such as coffee makers that use customized brewing methods," Zepto CEO Aadit Palicha stated.

The online cafe promises a 10-minute delivery service and offers a varied menu with over 148 items, including freshly brewed chai, coffee, all-day breakfast, pastries, and savory snacks. It serves the idea of a quick meal for today's fast-paced urban lifestyle.

Aadit Palicha and Kaivalya Vohra formed Zepto in July 2021, and Zepto Cafe was introduced in April 2022 as a branch of Zepto.

"With only 15% of our growing network of dark stores that have demonstrated unit economics, Zepto Cafe is currently generating a (estimated) Annual Run Rate (ARR) GMV of Rs 160 crore, demonstrating the extraordinary reaction.

"As we expand into new cities and launch 100-plus new cafes every month, we are on track to achieve an ARR of Rs 1,000 crore by the next fiscal year," Palicha stated.

ARR is the estimate of future revenue based on previously collected income over a longer time frame, often one year.

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