Zepto, the quick commerce platform, is shifting its headquarters from Mumbai to Bengaluru and has signed a lease to convert the former Total Mall in Sarjapur into its new office, according to a report by Moneycontrol. Originally planned for November, the relocation deadline has now been extended to February 2024.

The company had earlier requested its 1,700 to 1,800 employees to relocate from Powai, Mumbai, to Bengaluru. However, delays in securing a suitable office space have pushed the move to a later date. As part of the transition, some employees will start working from a temporary office in Bengaluru by November 11. Zepto’s tech and product teams, already based in Bengaluru, will soon be joined by other business functions still headquartered in Mumbai. The plan is for all major teams to operate from the new office in Sarjapur once it’s ready.

The former Total Mall, now called Market Square Mall, once a bustling retail center, will be repurposed to serve as Zepto’s new corporate headquarters.

The estimated cost of relocating Zepto’s headquarters is around ₹3-4 crore, but the company is expected to save ₹40-50 lakh per month in rental expenses, as Bengaluru offers lower office costs compared to Mumbai, according to sources cited in the report.

Zepto’s new location places it close to key competitors like Swiggy and Flipkart, both of which also have offices in the Sarjapur area. This strategic move is expected to benefit Zepto in terms of talent acquisition and potential industry collaborations.

Currently, Zepto has around 1,000 employees in Mumbai, 400 in Bengaluru, and 300 in various other cities for local operations. Sources say about 90% of the Mumbai-based employees are ready to relocate, with ongoing discussions for the remaining staff. Only around 5-7% of employees may not make the move.

In addition to the relocation, Zepto plans to expand its workforce by hiring 500 more employees, bringing its total staff count to about 2,200-2,300, according to Zepto's co-founder and CEO, Aadit Palicha.

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has raised over $1.5 billion in funding from investors such as Nexus Venture Partners and StepStone Group. The company is currently valued at $5 billion, making it one of the fastest-growing startups in the quick commerce sector.