Zepto's DRHP underlines the inevitable cost at the heart of quick commerce

Zepto just filed its DRHP. It wants to open 1,900 new dark stores, on top of the 1,139 it already runs. Blinkit, the only profitable player in the sector, is racing to 3,000 stores by March 2027. Meanwhile, its adjusted EBITDA is just Rs. 37 crores — not a lot considering the billions that have been spent on getting it to profitability.The dark store is quick commerce's core bet — and its biggest fixed cost. Rents are rising, FMCG prices are up, and user growth at Zepto actually declined between December and March despite spending over Rs 1,300 crore on advertising.The model is scaling. But will the economics ever catch up?Tune in.Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.