Zepto Adds More than 20 Dark Stores to its Operations in Tamil Nadu

Nitin Konde, Varun Bhardwaj

26 Feb 2025 — 3 min read

Zepto Expands in Tamil Nadu with 20+ New Dark Stores

Beyond Chennai, Zepto, a fast commerce startup based in Bengaluru, has already established itself throughout Tamil Nadu. Coimbatore, Tiruchirappalli, Madurai, Vellore, and Salem are just a few of the districts in the state where the company has started operations. With more than twenty dark stores open in Tamil Nadu, each one well situated to maximise delivery within two to three kilometres, enabling partners to transport purchases in ten minutes while staying safe, Zepto is poised to solidify its position in the state.

Going Vocal for Local

Zepto users and other clients can purchase delicate coconuts and green vegetables from over 100 farmers in Tamil Nadu, including Palacode and Pollachi. This provides Zepto with a much-needed local connection. With its vibrant cities and high desire for convenience, the state of Tamil Nadu is a crucial market for Zepto, according to Divesh Sawhney, Chief Growth Officer.

In addition to enabling sellers to serve customers more quickly, service expansion opens up new business prospects for nearby companies. He went on to say that the company is dedicated to strengthening our ties with the community while delivering speed, quality, and affordability to every home.

Setting up Another Bench Mark

Zepto Cafe, the company's fast food delivery division, has exceeded one lakh orders daily. Aadit Palicha, the CEO and co-founder of Zepto, shared the accomplishment on social media, emphasising the Zepto Cafe's expansion in the quick-service food (QSR) sector. In a post on X, Palicha claimed that Zepto Cafe currently receives 100,000 orders every day. Every day, Zepto Cafe receives 100,000 orders.

That's getting close to a steady-state gross margin of 50% and an annualised GMV run rate of $100M. "We still have a long way to go, but I think the QSR sector in India is about to undergo a revolution," he posted. According to an article in a renowned media outlet, Zepto Cafe has been growing rapidly, launching 100 new locations each month. Zepto reported operating revenue of INR 4,454 crore in fiscal year 2024 (FY24), a 120% increase over FY23.

Rapid Commerce Race is Getting More Intense

The rapid commerce industry has evolved into a high-cash-burn sector, with companies allocating billions towards expansion and client acquisition. Industry estimates indicate that the aggregate monthly cash burn of rapid commerce entities, including new entrants, ranges between INR 1,300 and 1,500 crore—more than double in recent months.

Despite nearing operational breakeven in Q2 FY25, Blinkit’s losses escalated in Q3 FY25, with operating losses rising to INR 103 crore from INR 8 crore in the preceding quarter. Swiggy reported a net loss of INR 799 crore, while Instamart had an adjusted EBITDA loss of INR 578 crore in Q3, compared to INR 358 crore in Q2.

Zomato's ability to continue investing in Blinkit stems from its financial stability. In November 2024, Zomato secured INR 8,500 crore in a qualified institutional placement (QIP) to enhance its balance sheet and finance its rapid commerce operations. As of December 31, 2024, Zomato possessed cash reserves amounting to INR 19,235 crore, providing adequate liquidity to support Blinkit's expansion.