Zepto's new HQ will be in this Bengaluru mall
What's the story
Zepto, a leading player in India's quick commerce sector, has finalized a lease agreement for its new headquarters at Total Mall in Sarjapur, Bengaluru, as per Moneycontrol.
The company has pushed its relocation deadline and is now asking employees to move by February next year.
The decision comes after the search for an appropriate office location took longer than expected.
This move signifies a potential departure from the traditional office space model commonly adopted by start-ups.
Transition phase
Zepto begins transition to new Bengaluru office
Despite the long timeline, Zepto has already started moving some roles to a temporary office in Bengaluru. Work at this temporary office is expected to start around November 11.
Currently, while Zepto's business divisions function from Mumbai, its tech and product teams are located in Bengaluru.
After February, all core teams will be brought under one roof at the new Sarjapur office.
Financial impact
Zepto's HQ move: Cost and strategic advantages
The estimated cost of moving Zepto's HQ from Mumbai to Bengaluru is said to be around ₹3-4 crore, a one-time expense.
However, source told Moneycontrol that the move will save the company monthly rent of around ₹40-50 lakh.
The new office location in Sarjapur also brings Zepto closer to competitors such as Swiggy and Flipkart, who have offices in the same area.
Unexpected pick
Benefits of a having office in a shopping mall
While the specific reasons behind Zepto's decision to select a mall for its headquarters remain unclear, there could be several advantages to this unconventional choice.
Malls typically offer ready-made infrastructure including high-speed internet connectivity, power backup, and advanced security systems.
Additionally, these spaces may provide amenities like cafeterias, food courts, and entertainment options for employees, potentially contributing to a more vibrant work environment.
Staff shift
Zepto's employee relocation and future hiring plans
Out of Zepto's total workforce of 1,700-1,800 employees, nearly 1,000 are located in Mumbai. The rest are divided between Bengaluru and other regions for city operations.
Nearly 90% of the Mumbai-based employees have agreed to relocate, reported Moneycontrol.
Zepto is experiencing significant growth, with plans to hire 500 new employees in Bengaluru. The new headquarters will need to accommodate this expanding workforce.