Launched in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly grown in India’s quick commerce space. With over 250 dark stores across 10 metros, it promises hyperlocal grocery delivery in 10 minutes.
However, Zepto doesn’t offer traditional franchising. Instead, it provides dark-store partnerships (micro-warehouses) and delivery fleet partnerships. This post breaks down costs, potential returns, eligibility, and application steps for aspirants.
💼 Franchise Models Explained
A. Dark Store Franchise (or Partnership)
- Zepto owns the model and branding but franchisor provides infrastructure guidance; franchisee manages stock, staff, and delivery.
B. Company-Owned, Franchise-Managed (COFM)
- Zepto retains asset ownership; franchisee handles operations and logistics .
C. Delivery Fleet Partner
- Lower investment model; franchisee operates a fleet of delivery agents/bikes.
💸 Investment Overview
Below is a consolidated investment breakdown based on trusted online sources:
| Expense Category | Estimated Cost (INR) |
|---|---|
| Franchise Fee / License | ₹2–10 Lakh (typically ₹5–10 L) |
| Infrastructure Setup (dark store) | ₹10–20 Lakh |
| Inventory (initial stocking) | ₹3–20 Lakh |
| Equipment & Tech (POS, racks) | ₹1–5 Lakh |
| Delivery Fleet / Accessories | ₹0.5–2 Lakh (if standalone model) |
| Lease/Rent & Security Deposit | ₹2–12 Lakh (3 months rent + deposit) |
| Licenses & Permits | ₹0.5–1 Lakh |
| Working Capital (3 months) | ₹5–10 Lakh |
| Total Estimated Investment | ₹20–50 Lakh (₹12–55 L range) |
- Conservative estimates for smaller dark stores start at ₹20–25 Lakh.
- Larger setups in major metros can require ₹40–50 Lakh or more.
There’s no royalty fee, though commission or rent is typically charged (e.g., 3% sales share or fixed rent) .
📈 Revenue Projections & ROI
Estimated returns vary based on operations and location:
Monthly Sales:
- In Tier-1 metros: ₹15–25 Lakh
- In Tier-2 cities: ₹5–10 Lakh
Profit Margins:
- Gross margins ~15–30%
- Net profits vary, estimated ₹3 Lakh/month in metros or ₹0.75–2 Lakh/month in smaller cities
Break-even & ROI:
- Most outlets reach breakeven in 12–18 months
- Annualized ROI projected at 30%–40%
Reddit users affirm operational viability:
“At a dark store level… each new dark store becomes EBITDA positive within 6 months.”
✅ Eligibility & Requirements
To partner with Zepto, you typically need:
1. Capital readiness: ₹20–50 Lakh total liquidity
2. Commercial space:
- Dark store: 300–1,200 sq ft, preferably ground floor
- Delivery setup needs small parking space and vehicles
3. basic staffing: 6–10 employees (packers + delivery agents)
4. Licenses: Shop act, GST, FSSAI, other permits
5. Operational readiness: Experience in logistics or retail is beneficial but not mandatory
6. Tech capability: Must run Zepto-provided inventory, tracking, and POS systems
🛠️ How to Apply: Step-by-Step
- Visit Zepto website: Navigate to “Partner With Us” section
- Submit application: Include personal details, investment capability, location proposals
- Screening & evaluation: Zepto team reviews your proposal and may schedule a call
- Site visit: A team visits and verifies your space feasibility
- Agreement & terms: They negotiate either fixed rent or revenue share
- Documentation: Submit documents—GST, shop license, identity proofs, bank statements
- Setup & training: Zepto offers guidance on layout, shelving, systems, and staff training
- Go live: Once setup is complete, you start fulfilling Zepto orders
- Typical timeline: Application to launch takes 4–8 weeks, depending on approval and setup.
⚖️ Pros & Cons
✅ Pros
- Leverage of Zepto’s brand and hyperlocal reach
- Tech-enabled operations with inventory & route optimization
- High-margin quick commerce with quick payback
- Strong scalability and performance incentives
❌ Cons
- High upfront cost, especially for dark-store format
- Urban-centric model; limited rural appeal
- Operationally demanding: stock freshness, logistics efficiency
- Customer complaints sometimes arise in app pricing and hygiene
💡 Tips for Success
- Choose densely populated urban localities for optimal coverage
- Maintain high operational discipline to ensure <10-min deliveries
- Leverage incentive programs: high order volumes and customer satisfaction
- Continuously optimize stock based on local demand
- Offer strong staff support to avoid quality or hygiene issues
📊 Quick Snapshot
| Metric | Estimate |
|---|---|
| Initial Investment Range | ₹20–50 Lakh |
| Store Size | 300–1,200 sq ft |
| Monthly Sales (Metro) | ₹15–25 Lakh |
| Monthly Sales (Tier‑2) | ₹5–10 Lakh |
| Net Profit Margin | 15–30% |
| Net Monthly Profit (Metro) | ₹3 Lakh |
| Net Monthly Profit (Tier‑2) | ₹0.75–2 Lakh |
| Break-even Timeline | 12–18 months |
| Annual ROI | 30–40% |
| Royalty/Commission | Typically 3% sales or fixed rent |
Final Takeaway
Zepto offers a modern, high-growth opportunity through dark-store and delivery partnerships. With investments between ₹20–50 Lakh, entrepreneurs can tap into the booming 10-minute grocery delivery trend. Well-run outlets can break even within a year and generate healthy monthly profits—with strong ROI potential.
If you’re considering launching in Delhi/NCR, or want help with cash flow modeling, location scouting, or application prep, feel free to reach out—I’m here to help you succeed in quick commerce.
Shashi Kant is the Founder and Editor of BusinessScroller.com, a leading platform for business insights, finance trends, and industry analysis. With a passion for journalism and expertise in business reporting, he curates well-researched content on market strategies, startups, and corporate success stories. His vision is to provide valuable information that empowers entrepreneurs and professionals. Under his leadership, BusinessScroller.com has grown into a trusted source for in-depth articles, customer care guides, and financial expertise.
