Flush with funds, quick commerce unicorn Zepto is planning to relocate from Powai in Mumbai to a larger office space in Bengaluru’s Sarjapur to accommodate its imminent new hires.
While the company will maintain an office in Mumbai, its primary operations will shift to the new space in Bengaluru.
A spokesperson for Zepto confirmed the development to Business Standard.
Although the company already has an office in Bengaluru, it is currently operating out of a larger office in Mumbai in partnership with co-working space provider WeWork.
“The lease period with WeWork ends in December.
"To continue operating from its Mumbai office, the company would incur housekeeping and management charges,” said a source familiar with the situation.
Zepto currently employs around 1,800 people and plans to hire an additional 500 soon, chief executive officer Aadit Palicha told Business Standard earlier.
“The team has outgrown the current office, and with new hires coming in, the company needs a bigger space,” the source added.
Of Zepto’s 1,800 employees, about 200 are working remotely from across the country, while the rest are evenly split between Mumbai and Bengaluru.
Around half of Zepto’s leadership team, including co-founder Kaivalya Vohra and chief financial officer Ramesh Bafna, are also based in Bengaluru.
“Half of the technology team is already in Bengaluru, while most of the product and marketing teams are in Mumbai.
"The company wants the product and technology teams to work together in a single office space,” the source said.
Zepto is in the advanced stages of finalising a lease for a new property in Bengaluru’s Sarjapur.
While the deal is yet to be completed, the company expects to save quite a bit on rent, which will help offset the relocation costs for its employees — an expense the company will cover.
“It is up to the employees whether they want to relocate or work remotely.
"Zepto is offering them the flexibility to choose,” the source said.
In addition to the new office space in Bengaluru, Zepto is also planning to find another office in Mumbai.
The number of employees who will continue to operate from Mumbai will be determined based on the new lease agreements.
Zepto recently raised $665 million in Series F funding at a $3.6 billion valuation.
The company is also looking to strengthen its leadership ahead of its upcoming initial public offering by hiring several senior-level employees across various categories.
Zepto’s decision to move to Bengaluru highlights the challenges Mumbai faces in retaining startups due to high costs and infrastructure issues.
The Tech Entrepreneurs Association of Mumbai said that Zepto’s move to Bengaluru demonstrates that the city can successfully incubate and scale startups.
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