The Indus Zone Tech Desk | Mumbai, October 22, 2025:
Indian quick-commerce startup Zepto has let go of around 300 employees as part of its ongoing cost-optimization strategy. The company, co-founded by Aadit Palicha and Kaivalya Vohra, is restructuring operations to improve efficiency and reduce overheads amid growing competition in the 10-minute delivery space.
According to sources, this move is part of a larger plan that has impacted nearly 1,000 employees in total since the beginning of 2025, as Zepto aims to balance rapid growth with financial discipline.
Zepto’s Cost Efficiency Mission
After raising $450 million earlier this year—pushing its valuation to $7 billion, a 40% jump from last year’s $5 billion—Zepto has now shifted its focus toward profitability and operational sustainability.
Insiders revealed that the 300 employees affected recently were transitioned to third-party service providers that work closely with Zepto. This approach allows the company to maintain productivity while lowering fixed monthly expenses.
A Zepto spokesperson confirmed the move, saying:
“We are building a culture of cost excellence regardless of the size of our balance sheet. Over the past six months, we have automated several operational tasks such as invoice processing, real estate management, and replenishment. These are now handled by off-roll staff or software-driven systems.”
Departments Affected by the Layoffs
The recent cost-cutting drive has impacted teams across operations, technology, finance, and category management, among others. Sources also indicated that a major portion of the earlier layoffs came from the customer support division, which is being automated extensively through AI-driven tools.
Some employees from the tech and support departments have been redeployed to roles in quality assurance and quality control, as Zepto tries to minimize job losses while maintaining efficiency.
Automation at the Heart of Zepto’s Strategy
Reports suggest that Zepto’s automation push has been in progress since early 2025. With most repetitive and manual tasks now being managed by in-house software solutions, the company aims to rely less on manual labor and third-party tools.
Industry analysts note that this trend mirrors a larger shift across India’s startup ecosystem, where companies are prioritizing automation, AI adoption, and operational cost control to reach profitability faster.
“Every Hire Is a Privilege”: Zepto CEO Aadit Palicha
During an internal town hall held on October 17, CEO Aadit Palicha addressed employees about the company’s financial strategy. He emphasized the need to “obsess over costs” and adopt a frugal growth mindset.
“We are going to be very careful with every rupee spent. Zepto will cut down on AWS and software expenses, and wherever possible, we’ll build our own in-house dashboards instead of using third-party tools,” Palicha reportedly told staff.
“Every new hire will be treated as a privilege. We want to double business output with the same headcount rather than expand unnecessarily,” he added.
Currently, Zepto employs around 5,700 people and intends to maintain a similar workforce in the near future.
Zepto’s Growth Story and Challenges
Founded in 2021, Zepto quickly rose to prominence as one of India’s most promising quick-commerce startups, competing with players like Blinkit, Swiggy Instamart, and BigBasket Now. Its ultra-fast 10-minute delivery model gained massive traction in metro cities.
However, with rising infrastructure costs and high customer acquisition spending, the quick-commerce segment has entered a consolidation phase. Experts believe Zepto’s new focus on automation, profitability, and cost control is a sign of maturity in the industry.
“Zepto’s cost-efficiency measures reflect the broader startup trend where companies are shifting from growth-at-any-cost to sustainable scaling,” said startup analyst Rohit Sharma.
Zepto’s Next Steps
As the festive season and Diwali 2025 approach, Zepto plans to strengthen its delivery operations in high-demand regions while maintaining a lean organizational structure.
The company is also expected to expand its private-label offerings and optimize warehousing for better margins.
Despite the job cuts, Zepto’s long-term strategy appears focused on sustainability, automation, and tech-driven growth — signaling a new phase for the Indian quick-commerce sector.
