-
Zepto cost efficiency measures lead to the removal of around 300 employees from the company’s payroll.
-
Zepto layoffs come after a major $450 million fundraise, signaling a shift toward sustainable growth.
-
The company plans to go “very tight” on hiring and reduce spending on AWS and other operational software.
Zepto Cost Efficiency: Company Focuses on Lean Operations After Fresh Fundraise
In a strategic move toward better financial management, Zepto cost efficiency efforts have led to around 300 employees being taken off the company’s direct payroll. According to people familiar with the situation, the quick commerce startup has initiated this change as part of its ongoing cost optimization drive. The decision comes just days after Zepto successfully raised $450 million in a fresh funding round that pushed its valuation to $7 billion — a 40% increase from the $5 billion mark it held last year.
Despite the celebratory tone around the funding, this development reveals the company’s serious focus on maintaining profitability and balancing expenses. As the quick commerce segment in India grows increasingly competitive, with rivals like Blinkit, Swiggy Instamart, and BigBasket vying for market share, Zepto is tightening its budget to ensure long-term stability.
Sources close to the company told Moneycontrol that these cost-cutting measures are not limited to workforce restructuring. Zepto is also reducing its spending on Amazon Web Services (AWS) and other software tools, which form a large part of its operational costs. By streamlining these areas, the startup aims to improve its overall efficiency without compromising service quality or delivery speed.
This Zepto cost efficiency initiative signals a shift in the company’s approach. After a phase of rapid expansion and aggressive hiring, Zepto is now prioritizing financial discipline, focusing on sustainability rather than just growth at any cost.
Zepto Layoffs: Around 300 Employees Transitioned to Third-Party Service Providers
The Zepto layoffs are part of a broader restructuring strategy. As per reports, around 300 employees have been removed from Zepto’s payroll and placed with third-party service providers that continue to work with Zepto and other companies. This means that while the employees are no longer on Zepto’s direct payroll, they will still contribute to the company’s operations indirectly through contractual arrangements.
According to a person familiar with the development, this move helps Zepto lower its fixed monthly costs related to employee salaries while maintaining the same level of productivity and output. Essentially, the company is converting some of its fixed expenses into variable ones, allowing more flexibility in managing financial performance month-to-month.
The broader Zepto layoffs and transitions reflect a growing trend among Indian startups that have matured beyond their initial growth phases. As funding becomes more strategic and investor expectations shift toward profitability, many high-growth startups are reassessing how they manage their teams and operational costs. Zepto’s decision aligns with this changing landscape, demonstrating that even well-funded companies are now emphasizing efficient spending.
Interestingly, this development comes at a time when Zepto’s leadership, including co-founders Aadit Palicha and Kaivalya Vohra, have repeatedly expressed confidence in the company’s long-term vision. Palicha, in a recent town hall after the $450 million funding round, mentioned that while Zepto has “cracked proximity,” it now needs to “crack value” — meaning lowering product prices without hurting margins. These Zepto layoffs and restructuring moves seem to be early steps in achieving that balance.
Zepto Cost Efficiency: Balancing Growth, Competition, and Profitability
The Zepto cost efficiency strategy isn’t limited to workforce optimization. It’s a part of a deeper operational rethink that touches technology, logistics, and vendor management. Zepto’s leadership is reportedly reviewing expenses across various departments, from cloud infrastructure to supply chain systems. By minimizing unnecessary overhead, the company aims to build a more sustainable cost structure that can withstand competitive pricing pressures.
This approach comes at a crucial time for the quick commerce industry. With heavy competition from Blinkit, Swiggy Instamart, and Amazon Fresh, companies are finding it difficult to maintain profitability while offering 10-minute deliveries and discounts. The race for market dominance has often led to increased spending on marketing, warehousing, and delivery incentives — all of which eat into margins. Zepto’s decision to become leaner indicates that the company wants to build efficiency at scale rather than continue a costly expansion battle.
Furthermore, reducing dependency on expensive tools like AWS could save millions annually. Many startups rely heavily on third-party cloud and software solutions that become increasingly expensive as operations expand. Zepto’s decision to renegotiate or reduce these contracts is part of its broader Zepto cost efficiency blueprint.
The company’s move to be “very tight” on hiring also fits this model. Instead of adding more headcount, Zepto plans to make better use of existing resources and automation to drive results. This shift doesn’t mean the company is shrinking — rather, it is reorganizing itself to ensure each role and process contributes directly to measurable outcomes.
Zepto Layoffs: What It Means for Employees and the Industry
The Zepto layoffs reflect a new phase for Indian startups — one where efficiency and accountability take center stage. For employees, this transition to third-party payrolls may initially seem concerning, but in most cases, it ensures continuity of work under different contractual terms. Such arrangements have become common in industries where flexibility and scalability are crucial, such as e-commerce, logistics, and customer support.
From an industry perspective, Zepto’s move sends a strong signal to other quick commerce players. As investor sentiment shifts toward companies that can balance growth with profitability, similar cost control measures are likely to appear across the sector. Zepto’s decision could inspire competitors to review their workforce structures, software spending, and cloud usage as well.
While layoffs are never easy, the company’s management appears to be handling the change strategically, focusing on cost reduction without sudden disruptions in service. Zepto’s leadership has maintained that its long-term vision remains unchanged — to provide fast, affordable, and high-quality delivery services across India. The Zepto layoffs and related cost measures are seen as part of a broader plan to sustain this goal through a more disciplined financial framework.
Looking ahead, Zepto’s dual focus on expansion and efficiency could help it solidify its position as one of India’s most valuable startups. The company’s $7 billion valuation highlights investor confidence in its model. However, in today’s market, growth must come with control — and Zepto seems to be learning that balance early.
Conclusion
The Zepto cost efficiency plan and the recent Zepto layoffs show that the company is entering a new chapter — one driven by sustainable growth, operational discipline, and profitability. While the changes may appear tough in the short term, they set the foundation for a stronger, more stable business in the long run.
As India’s quick commerce race intensifies, Zepto’s strategic restructuring serves as a reminder that even the fastest-growing startups need to pause, reflect, and optimize. The company’s ability to make tough decisions today may be what secures its success tomorrow.
