Zepto CEO Aadit Palicha to employees in town hall: When we started, we were number 7 and we are number 2 now; but the challenge now is…

Zepto has removed around 300 employees from its payroll as part of a , transferring them to third-party service providers while maintaining productivity levels. CEO Aadit Palicha addressed employees in a following the company's $450 million fundraise, emphasizing the journey from being the seventh player to becoming the second-largest quick commerce platform in India.

The workforce restructuring comes just days after Zepto raised fresh capital from California Public Employees' Retirement System (Calpers) and existing investors, valuing the company at $7 billion—a 40 percent jump from its $5 billion valuation last year, according to MoneyControl. A total of approximately 1,000 Zepto employees have been impacted since the beginning of 2025, sources told the publication.

Cost-cutting measures extend beyond workforce optimization

The Mumbai-based company is implementing broader cost reduction strategies, including cutting back on Amazon Web Services expenses and other software spending. Zepto will also adopt a "very tight" approach to future hiring, people familiar with the matter revealed to MoneyControl. By moving employees to third-party service providers, Zepto aims to lower fixed monthly costs while maintaining operational efficiency.

The restructuring strategy allows the quick commerce firm to reduce its employee-related expenses on a month-on-month basis without compromising productivity. This approach reflects the company's focus on building operating leverage as competition intensifies in India's $7 billion quick commerce market.

Battle for market leadership intensifies with fresh capital infusion

With approximately $900 million in net cash reserves following the latest funding round, Zepto is positioning itself to challenge market leader Blinkit, owned by Zomato's parent company Eternal, and Swiggy's Instamart. The company has raised close to $3 billion in total funding, with nearly $2 billion coming in the past 18 months alone.

Zepto scaled order volume by 200 percent over the past 18 months while turning more stores profitable, according to investor Goodwater Capital. The fresh capital is expected to reignite competitive intensity in the quick commerce sector, with Zepto likely to increase marketing and expansion spending to capture greater market share from its larger rivals.