Zepto launches premium grocery tab ahead of IPO

Key Takeaways

• Zepto is launching 'Select', a premium grocery tab offering imported food, gourmet groceries, and artisanal products
• The move mirrors Blinkit's Gourmet pilot and Swiggy Instamart's premium section as quick commerce battles shift toward higher margins
• Zepto's IPO includes a fresh issue of ₹8,010 Cr, with plans to expand to 1,904 dark stores by FY30

Zepto is preparing to launch 'Select', a dedicated premium grocery service within its app, as the quick commerce company positions itself for a public listing later this year. The service will offer imported food, gourmet groceries, and other high-end products through a separate in-app tab, according to a Moneycontrol report citing sources. Zepto has begun onboarding premium brands following a pilot that reportedly drew positive response in select areas.

The timing is deliberate. Zepto filed its updated draft red herring prospectus for an IPO that includes a fresh share issue worth ₹8,010 crore. Premium products mean higher average order values and better margins. Both metrics matter when you are trying to impress public market investors.

Why quick commerce is chasing premium grocery

The 10-minute delivery wars started with essentials: milk, bread, eggs. That playbook scaled fast but left thin margins. Quick commerce companies now face a strategic pivot. Low-value, high-frequency orders built habit. Premium categories build profit.

Zepto is not alone in this shift. Blinkit recently launched 'Gourmet', a premium grocery pilot running in Bengaluru, Delhi NCR, and Mumbai. The service operates through about five dedicated dark stores, stocking artisanal cheeses, specialty breads, and ozone-washed produce. Swiggy Instamart has also expanded its gourmet assortment with a dedicated section for premium and imported products.

The pattern is clear. All three major players are now fighting for the same affluent urban consumer who wants high-quality groceries delivered fast. Speed alone is no longer a differentiator. Selection is.

How Zepto plans to compete on price

Sources told Inc42 that Zepto's Select offering is still in a nascent stage and the branding is not finalized. But one competitive angle is already taking shape: the company is reportedly looking to price some imported and premium products below what rivals charge.

Undercutting competitors on premium goods is an interesting bet. Premium buyers typically care less about price than about selection and quality. But in a market where Blinkit, Instamart, and Zepto all serve overlapping pin codes, even small price differences could sway habitual purchasers. Zepto seems willing to trade margin for market share in the short term.

Zepto's dark store count vs. the competition

As of March 2025, Zepto operated 1,139 dark stores. Swiggy Instamart sits almost level at 1,143. Blinkit leads with 2,243. On daily order volumes, Blinkit processes 30.4 lakh orders per day compared to Zepto's 23.3 lakh.

Zepto plans to close the gap. The IPO prospectus allocates ₹1,629 crore to build 1,904 additional dark stores by FY30, plus ₹1,734.9 crore for lease payments on those facilities. Another ₹1,324.8 crore is earmarked for tech and cloud infrastructure. Marketing and promotional spend gets ₹520 crore through Zepto's marketplace subsidiary.

The company has concentrated expansion on India's top 40 to 60 cities. Order volumes grew at a compound annual growth rate of 119.4% between FY24 and FY26. That growth rate will inevitably slow, which makes premium grocery a logical next lever.

What this means for the quick commerce market

Quick commerce in India is projected to hit $7-8 billion in 2025, with year-over-year growth above 40%. The sector has moved past the land-grab phase. The next battle is about basket depth and customer lifetime value.

Premium grocery is a natural extension. Imported olive oils, specialty coffee beans, and artisanal cheeses carry higher absolute margins than commodity staples. They also attract a customer segment less likely to churn over a ₹10 discount. For Zepto, building this segment before IPO gives public investors a growth story beyond just adding more dark stores.

The IPO timeline

Zepto's public market debut is slated for later this year. The company raised $1.35 billion across multiple funding rounds and reached a reported valuation of $5.5 billion in late 2024. Co-founders Aadit Palicha and Kaivalya Vohra, both Stanford dropouts who started the company in 2021, have taken Zepto from a 10-minute delivery novelty to a genuine challenger in India's hypercompetitive grocery market.

The IPO will test whether public investors share private market enthusiasm for quick commerce. Premium grocery is part of Zepto's answer to that question.

Frequently Asked Questions

What is Zepto Select?

Zepto Select is a planned premium grocery service within the Zepto app, offering imported food, gourmet groceries, and artisanal products through a dedicated tab.

When will Zepto Select launch?

The service is expected to launch in the coming weeks, though the company says the offering is still in a nascent stage and the final name is not confirmed.

How does Zepto compare to Blinkit in dark store count?

As of March 2025, Zepto operates 1,139 dark stores compared to Blinkit's 2,243. Zepto plans to add 1,904 more stores by FY30.

What is Zepto's IPO size?

Zepto's planned IPO includes a fresh issue of shares worth ₹8,010 crore, with proceeds going toward dark store expansion, technology infrastructure, and marketing.

Is Blinkit also launching premium grocery?

Yes. Blinkit is piloting 'Gourmet', a premium grocery service operating through about five dedicated dark stores in Delhi, Bengaluru, and Mumbai.

Source: Inc42 Media / Shrishti Bisht