Zepto Franchise Cost: Investment, Profitability, ROI & more
Over the past years, the demand for quick and efficient grocery delivery services has increased significantly. One of the major quick-commerce players in this industry is Zepto of India, one of the fastest of such firms. Customers love the convenience of getting groceries in 10 minutes, it is a very popular household. But what about business opportunities? Is there an investment worth considering in owning a Zepto franchise?
So, let’s see the investment, profitability and growth potential of a Zepto franchise.
What is Zepto?
Zepto is India’s fastest quick commerce platform that delivers groceries, snacks, beverages and household essentials in under 10 minutes. It is run through dark stores, or small warehouses situated strategically across different locations to enable rapid deliveries. This demand for convenience along with the efficiency and technology of the company has therefore attracted a large number of customers leading to a rapid growth of the company.
About Zepto
| Company Name | Zepto |
| Founder(s) | Aadit Palicha and Kaivalya Vohra |
| Established Year | 2021 |
| Headquarter | Mumbai, Maharashtra, India |
| Business Sector | Quick Commercial Sector |
| Offering Services | Groceries, vegetables, dairy, personal care products, household essentials, snacks, and more |
| No. of Outlets | 200+ Dark Stores (as of 2023) |
| Revenue in 2023 | Rs 2,024 Crore (Rs 20.24 Billion) |
Why Invest in a Zepto Franchise?
A Zepto franchise can be a good business opportunity to invest in because:
- High demand: People love to shop online and quick deliveries.
- Strong brand: Zepto is already a very strong and a trusted brand in the quick commerce value proposition.
- Tech-Driven Model: Advanced technology makes a tech driven model which leads to smooth running of the business.
- Support: Zepto offers support for Franchise owners in the form of training, logistics support and marketing.
- Scalability: The business model is scalable so it can be expanded into new locations.
Zepto Franchise Cost
In general, the amount of total investment required varies between Rs 25 lakh to Rs 50 lakh in India
Investment Required for a Zepto Franchise
The cost of investing into Zepto Franchise will depend on the location, store size and operational costs. The main expenses of these kinds are as follows:
1. Franchise Fee
There is a franchise fee charged by Zepto which can be between Rs 5 lakh to Rs 15 lakh as per the area demand and location of Zepto franchise.
2. Infrastructure and Setup Costs
But setting up such a store also helps to account for rent, interiors and storage facilities, the minimum of which will be somewhere in the region of Rs 10 lakh to Rs 20 lakh.
3. Inventory and Stock
To stock groceries and household essentials, one needs an initial capital of Rs 5 lakh to Rs 10 lakh.
4. Technology and Software
As of now, Zepto has an integrated software system and the franchise set up has a capex of Rs 2 lakh to Rs 5 lakh.
5. Operational Costs
This includes the cost of (staff salaries, electricity, internet, etc), which on an average, could be anywhere between Rs 3 lakh to Rs 6 lakh per month.
6. Marketing and Branding
To get under local promotions, advertisements and branding, you need to spend Rs 2 lakh to Rs 5 lakh at least in the beginning.
Profitability of a Zepto Franchise
The Zepto franchise could be a profitable venture if handled properly. Here’s how the earnings work:
1. Revenue Generation
- Customers earn money through the customer orders in a Zepto franchise. In addition, the daily average sales vary from Rs 50,000 to Rs 2 lakh depending on where the outlet is located.
- It can earn Rs Rs 15 lakh on a monthly basis to Rs 60 lakh.
2. Profit Margins
- For expenses, the profit margin of Zepto franchise owners will be in the range of 15–25%.
- What this implies is a profit ranging from Rs 3 lakh to Rs 10 lakh every month.
3. Break-Even Period
With the right number of sales and expenses, most Zepto franchises can be considered to be breaking even in 12 to 24 months.
Growth Potential of Zepto Franchise
1. Expanding Market for Quick Commerce
It is expected the online grocery delivery will grow by 25% annually.
It means more people are willing to give in for the sake of convenience without engaging in traditional shopping.
2. Increased Customer Base
More franchise opportunities are coming up as Zepto is expanding in more cities.
The business is being steady because people also demand quick deliveries.
3. Technology-Driven Efficiency
With use of AI & data analytics, it is quite efficient in order management for it.
All these collectively lead towards reduction of waste, costs and enhanced customer experience.
4. Competitive Edge
Faster than any of its competitors such as Runnr and Big Basket, Zepto is the choice due to its 10 minutes delivery model.
How to Apply for a Zepto Franchise?
It is simple to apply for a Zepto franchise. Follow these steps:
- To find franchise details and contact information, visit Zepto’s official website.
- Complete your personal and business details which includes the kind of franchise model you would like to run and where you wish to operate.
- Upload the requisite documents as explained in the Zepto franchise policy.
- Zepto’s team will also have to review your application. They will check if you are suitable as a franchisee.
- After the bidding is approved, get the franchise agreement signed and pay the franchise fee. Create your micro-warehouse in that case.
- You will finish the setup, get training, marketing support and continuous assistance from Zepto and operate your franchise smoothly.
Challenges of Running a Zepto Franchise
Every business has challenges. Challenges you might encounter while running a Zepto franchise are as follows:
The platform is facing high competition as Blinkit and Swiggy Instamart are also its competitors and are expanding.
Operational Challenges include the challenges of managing inventory, deliveries and customer’s expectations.
It may be a highly costly investment for some entrepreneurs.
As Zepto is a Tech based startup, likeliness of tech dependency is huge, outage in technology can hamper the business.
Conclusion
When it comes to the quickly expanding quick commerce sector, Zepto franchise is an exciting and profitable business opportunity. By investing the right amount and good management you can create a business that turns a very handsome profit. Although this calls for empirical study on the investment, profitability and market conditions before the final decision.
Do you wish to be a part of India’s fastest grocery delivery revolution? And if yes, a Zepto franchise could be the thing to invest in.