Zepto Plans Major Headquarters Relocation from Mumbai to Bengaluru: Employees to Move by December
News Mania Desk/Agnibeena Ghosh/6th August 2024
Quick commerce startup Zepto is set to shift its headquarters from Mumbai to Bengaluru, according to recent reports. The move will see the company relocate from its current base in Powai, Mumbai, to a new location in Sarjapur, Bengaluru. Employees have been informed that they are required to move to Bengaluru by the end of November or early December.
A source familiar with the situation has revealed that Zepto will cover the relocation costs for its employees. The company estimates this one-time expense will amount to approximately ₹3-4 crore. This investment is anticipated to be offset by the savings Zepto expects to realize from reduced rental costs, which are projected to be around ₹40-50 lakh per month due to the move.
Currently, Zepto operates a significant portion of its business from Mumbai while housing its technology and product teams in Bengaluru. The relocation will consolidate the company’s operations by bringing all 1,700 to 1,800 employees under one roof in Bengaluru. The company plans to vacate its existing 80,000-90,000 square feet property in Mumbai and its 30,000-40,000 square feet space in Bengaluru. In its place, Zepto aims to secure a new, larger property spanning 1.5 lakh square feet in Bengaluru.
The new headquarters is expected to be located in or around Sarjapur, HSR, or Bellandur—areas that are home to numerous large multinational companies and startups. This strategic move places Zepto in close proximity to major players in the industry, such as Swiggy and Flipkart, who also have offices in these neighborhoods.
The decision to relocate is largely driven by the potential financial benefits and the desire to streamline operations. With nearly 90 percent of the 1,000 employees based in Mumbai already willing to move, the company anticipates that only a small fraction, around 5-7 percent, may not be able to make the transition. This high level of employee willingness is expected to facilitate a smooth relocation process.
Zepto’s relocation plan underscores its commitment to optimizing operational efficiency and reducing overhead costs. By consolidating its workforce in Bengaluru, the company aims to foster better coordination and collaboration among its teams. The move also reflects a broader trend among tech and commerce companies seeking to capitalize on the advantages offered by Bengaluru’s vibrant business ecosystem.
Overall, Zepto’s decision to relocate its headquarters marks a significant shift for the company as it positions itself for future growth and success. The move to Bengaluru not only promises substantial cost savings but also aligns Zepto with a dynamic business environment that is home to several of its key competitors.
