Zepto to appoint managed office operator for Bengaluru HQ
Quick-commerce platform Zepto is planning to appoint a managed office operator for its new head office in Bengaluru, said three people familiar with the development.
The startup, which is in the process of moving base from Mumbai to the southern city, is in talks with flexible workspace providers such as WeWork India, IndiQube and Awfis, the people said on the condition of anonymity.
Zepto recently signed a lease agreement for a 209,588 sq ft commercial space in Bengaluru’s Sarjapur Road. The operator it will choose will design, build, operate and manage Zepto’s new workspace, which was earlier a shopping centre named ‘Total Mall’. The ground floor of the office building will also have a dark store or warehouse of Zepto, with part-time workers.
“While the operator and contours of the deal are yet to be finalized, it is likely to be a five-year contract,” said the first person of the three people quoted earlier.
Zepto, WeWork India, IndiQube and Awfis didn’t respond to Mint’s queries.
Zepto has a little over 2,000 employees and plans to double its workforce in the coming year, said the second person. Its new office facility can accommodate around 3,500-4,000 seats.
The share of flexible workspaces in India’s overall commercial office market is only growing, with rising demand from homegrown and global firms for modern office solutions. From 7% in 2023, the share is expected to scale up to around 12% by 2028, according to investment banking firm Avendus Capital’s estimates.
In the flexible workspace segment, companies such as WeWork India and Awfis offer a combination of co-working spaces and managed office solutions or customized workspaces, while Bengaluru-based IndiQube is more focused on the latter.
Both IndiQube and WeWork India, for instance, plan to add 1.5 million sq ft of workspace each in 2024-25.
The process of the appointment of Zepto’s new office operator, the completion of interiors and fit-outs, and the shifting of employees would take a few months. Until then, the company has taken up temporary office space for some of its teams in Bengaluru, said the third person.
Zepto, which promises to deliver anything from groceries to cosmetics within about 10 minutes, in August secured financing of $340 million led by US-based venture capital firm General Catalyst, taking its valuation to $5 billion.
The digital platform, which is gearing up for a public-market listing next year, had gained its unicorn status in 2023, when it raised $200 million at a valuation of $1.4 billion.
