Zepto has completed the automation of its backend supply chain across India following a year of efforts, the CEO of the quick commerce platform shared in a social media update.

The firm currently handles around 25 lakh FMCG units daily via automated systems implemented throughout its network, Zepto founder and CEO Aadit Palicha shared on LinkedIn. "I’m thrilled to share that we have expanded our automation operations nationwide — right now, 25 lakh FMCG units are processed through automated resources across Zepto's supply chain daily!"

Palicha also included a video demonstrating the procedure at one of its facilities. The announcement states that the implementation of automation has led to over 45 percent increase in outbound labor productivity compared to manual processes. Palicha stated that this enhancement is leading to yearly savings on operating expenses projected to be in the hundreds of crores.

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The CEO of Zepto also verified that its engineering teams have created unique software to oversee and synchronize these automated resources, while also incorporating them into the company's main logistics framework.

“Our engineering teams have successfully developed internal software to direct these automated assets and connect them with our main logistics systems,” he stated.

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The progress occurs in the context of wider supply chain issues within the rapid commerce industry. Earlier this year, Zepto Café, the company’s 10-minute food delivery service, had reduced its operations because of sourcing limitations and a lack of skilled personnel for its kitchens.

Simultaneously, the swift expansion of quick commerce has driven considerable demand for hyperlocal warehouses, with needs projected to be three times greater than available supply.

Compact facilities—usually ranging from 2,000 to 8,000 sq ft and situated within residential neighborhoods—are progressively being repurposed from underused urban areas like vacant stores, unoccupied service apartments, and first-floor offices.

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As Zepto continues to expand, the automation of its supply chain is expected to improve operational efficiency and reduce costs, as Palicha mentioned in his post.