Grocery delivery startup Zepto is planning to move its headquarters from Powai in Mumbai to Sarjapur in Bengaluru, to consolidate its operations and to expand its tech presence and market reach.
Currently, Zepto, which delivers groceries, fruits, vegetables, electronics, clothing, and other household items, operates with its business function in Mumbai and its technical and product teams in Bengaluru. The company is planning to bring its 1,700-1,800 employees under one roof, with a mandatory relocation for staff by the end of November or early December, as said by a Zepto employee to the publication.
The startup is dealing with a large property in the Sarjapur, HSR, or Bellandur areas of Bellandur for the move. Out of its 1,700-1800 employees, around 1000 are based in Mumbai, 400 in Bengaluru, and 300 elsewhere. About 90% of the Mumbai-based employees are reportedly open to relocating, while a very small percentage are potentially unable to make the move.
Zepto will cover the relocation expenses for employees to make a move, which is predicted to cost the company between INR 3-4 Crore. However, the company is expecting to save approximately INR 40-50 Lakh per month in rent, due to the move from Mumbai to Bengaluru.
Ratna Mehta, CEO, and Managing Partner, of Fundalogical Ventures, said the investor community in Bengaluru is vibrant, so anyone looking for venture capital will be able to understand roadshows close to home and the support ecosystem post-investment is also robust.
Known as the start-up capital with over 26,000 active start-ups, Bengaluru offers access to unique talent and about 40% of the country’s unicorns, contributing to its status as the talent capital for enterprise-ready talent in India, said Vikram Ahuja, co-founder of ANSR, CEO Talent500 and ANSR Research. “This combination of diverse industries and exceptional talent makes Bengaluru a key draw for organizations aiming to build scale, drive transformation, and achieve value multiplication,” he added.
In June, Zepto raised $665 million which is about Rs 5,560 crore in Indian rupees in the latest round that valued the startup at $ 3.6 billion, almost triple what it was in the year back.
Zepto Co-founder Aadit Palicha operated from Mumbai but frequently between Bangalore and Mumbai.
Another source said, “Zepto is looking at a total of 1,800-2000 capacity in Bangalore closer to the existing office”.
Zepto will provide relocation support like travel, brokerage for new accommodation, hotel stay, and school admission support for staff kids. Zepto has given a six-month time period to employees who want to move to Bangalore.
“The transition to Bangalore will start from November-December and it will be fully operational in the first quarter of 2025,” the sources said.
The following company is confident that its growth trajectory and successive funding rounds will facilitate talent acquisition in Bengaluru. Entrepreneurs like Bhavish Aggarwal of Ola, Gaurav Munjal of Unacademy, Kunal Shah of CRED, and Jitendra Gupta of Jupiter are some of the industry experts who have previously relocated from Mumbai to Bengaluru in recent years.
