Quick Commerce Startup Shifts Focus From Aggressive Expansion To Store Productivity Ahead Of Public Listing
As Zepto prepares for its highly anticipated stock market debut, the quick commerce startup appears to be hitting the brakes on one of the strategies that fueled its rapid rise aggressive dark store expansion.
According to a recent report by Bank of America (BofA), Zepto added just 110 dark stores during FY26, taking its total network to 1,139 locations. The figure marks a dramatic slowdown compared to FY25, when the company opened 692 new dark stores and expanded its footprint from 337 stores to 1,029.
The moderation comes at a crucial time as investors closely scrutinize Zepto’s growth model, profitability path, and cash position ahead of its planned IPO.
Blinkit Continues To Race Ahead
While Zepto appears to be adopting a more measured approach, rivals continue to expand aggressively.
BofA estimates show that Blinkit, owned by Eternal, added 942 dark stores in FY26, taking its total network to 2,243 stores. Meanwhile, Swiggy owned Instamart added 122 dark stores and ended the fiscal year with 1,143 locations.
Interestingly, Zepto and Instamart now operate nearly the same number of dark stores, suggesting that the next phase of competition may be less about opening new locations and more about extracting higher productivity from existing ones.
Zepto’s Stores Are Processing More Orders
Despite having a store count similar to Instamart, Zepto appears to be generating significantly higher order volumes.
According to BofA estimates, Zepto processed around 640 million orders during FY26, compared to approximately 412 million orders for Instamart.
The numbers indicate that Zepto’s dark stores are handling more transactions and operating with stronger throughput, potentially helping the company improve efficiency without rapidly expanding its physical network.
For investors, this could be an encouraging sign that Zepto is moving toward a more sustainable growth strategy.
Cash Position Under Spotlight
The slowdown in store additions has also sparked questions about capital allocation and cash conservation.
Bank of America estimates that Zepto ended FY26 with net cash of around Rs 2,970 crore after accounting for lease liabilities.
However, the startup reportedly burned approximately Rs 802 crore in free cash flow during the fourth quarter of FY26. At that pace, analysts estimate Zepto has around 3.7 quarters or roughly 10 to 11 months of cash runway remaining.
While the company is expected to raise fresh capital through its IPO, the relatively limited cash buffer compared to competitors could influence strategic decisions in the near term.
Rivals Enjoy Much Larger War Chests
Compared to Zepto, larger rivals are sitting on significantly stronger balance sheets.
According to BofA, Eternal held net cash of approximately Rs 13,380 crore at the end of FY26, while Swiggy maintained cash reserves of around Rs 12,600 crore.
Although these funds sit at the parent-company level rather than being dedicated solely to Blinkit or Instamart, they provide substantial financial flexibility to continue investing aggressively in expansion, customer acquisition, and infrastructure.
This creates a challenging competitive environment for Zepto, which must balance growth ambitions with financial discipline.
A New Phase Of Growth?
The latest numbers suggest Zepto may be entering a new phase of its journey.
Instead of focusing primarily on adding new dark stores, the company appears to be concentrating on improving productivity, maximizing order volumes, and preserving capital ahead of its public listing.
The strategy could appeal to public market investors who are increasingly prioritizing operational efficiency and profitability over growth at any cost.
As Zepto moves closer to its IPO, the key question will be whether it can maintain strong order growth and market share without matching the aggressive expansion pace of competitors.
The answer could play a major role in determining how investors value one of India’s most closely watched startup listings.
