Zepto's Strategic Relocation: Moving Operations from Mumbai to Bengaluru
In a strategic move, Zepto, the quick-commerce unicorn, is relocating its base from Mumbai's Powai to a larger office space in Bengaluru's Sarjapur. |
Image: Aadit Palicha & Kaivalya Vohra, Founders of Zepto
Image Courtesy: Outlook Business
This decision comes as the company anticipates a wave of new hires, necessitating a bigger workspace. While Zepto will maintain a presence in Mumbai, the majority of its operations will now be centered in Bengaluru.
This blog explores the reasons behind this relocation, the company's growth plans, and its implications for Mumbai's startup ecosystem.
Relocation Details:
Zepto will move its operations from its current base in Powai, Mumbai, to Sarjapur in Bengaluru. This decision comes as part of a broader strategy to unify its workforce and centralize its operations.
Employee Transition:
The company has approximately 1,700-1,800 employees, with about 1,000 currently based in Mumbai. Zepto is offering to cover the relocation expenses for employees willing to move, a one-time cost estimated to be between ₹3-4 crore.
An anonymous employee stated, “While the company has been flexible for now, we have all been mandated to relocate to Bengaluru by the end of November or early December.”
Cost Savings and Benefits:
Image: Zepto
Image Courtesy: Telegraph India
The relocation is expected to save Zepto a substantial amount in rent, estimated at around ₹40-50 lakh per month.
A source close to the situation mentioned,
“The relocation cost will be offset because Zepto is estimated to save around ₹40-50 lakh in rent per month because of its move from Mumbai to Bengaluru.”
New Office Location:
Zepto is in the advanced stages of finalizing a new office space in Bengaluru, with potential locations including Sarjapur, HSR, or Bellandur.
These areas are already home to several multinational companies and startups, such as Swiggy and Flipkart, positioning Zepto in a vibrant tech and business hub.
Employee Willingness to Relocate:
The majority of Mumbai-based employees have expressed their willingness to relocate, with around 90% already agreeing to the move.
The remaining employees are in discussions, and it is anticipated that only 5-7% may be unable to relocate to Bengaluru.
Conclusion:
Zepto's decision to relocate to Bengaluru is a strategic move aimed at consolidating its workforce, optimizing costs, and positioning itself within a thriving tech ecosystem.
By bringing together its business and tech teams, the company aims to enhance collaboration and drive growth in the competitive quick-commerce space.
This relocation not only marks a new chapter for Zepto but also reflects the company's commitment to innovation and efficiency in a rapidly evolving market.
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