Zepto Cafe, the 10-minute food delivery arm of quick commerce startup Zepto, has scaled back its operations as it grapples with sourcing challenges and a shortage of trained kitchen staff. The move comes even as the category heats up with growing competition from Blinkit’s Bistro and Swiggy’s Snacc, which are aggressively expanding in urban markets.
According to industry sources, Zepto Cafe’s daily order volume has witnessed a sharp decline in recent months. At its peak earlier this year, daily orders hovered between 120,000–130,000, but fell to nearly 65,000–67,000 in the May–June period. This drop in order volumes also led to the closure of Cafe services at 44 of its ~1,000 dark stores in May.
The slowdown aligns with Zepto’s broader efforts to curb cash burn and optimize resources as it gears up for a potential $500-million fundraise from existing investors General Catalyst and Avenir Growth. This fresh infusion is being positioned as a preparatory move for a planned IPO in 2026.
Sources say the company has also slowed down the launch of new dark stores, which are key infrastructure for its 10-minute delivery promise, as it recalibrates its strategy across verticals.
App engagement metrics reflect this downtrend: downloads of the standalone Zepto Cafe app reportedly plunged to just 17,000 in June, down from 1.5 million in December 2024. However, more than 90% of Zepto Cafe’s orders continue to come from Zepto’s main app, indicating that the dedicated app’s performance has limited business impact.
The once-hyped express food delivery segment is seeing intense operational scrutiny as players strive to balance consumer expectations with logistical and financial realities. With rivals scaling up and consumer attention fragmenting, Zepto Cafe’s pullback could signal a period of consolidation in the category, even as Zepto itself stays focused on long-term sustainability and IPO readiness.
