Quick commerce company, Zepto has reported a decline in its permanent workforce and a sharp rise in employee attrition as it prepares for its public market debut.
According to the company’s draft red herring prospectus (DRHP), the number of permanent employees fell 3.6 per cent year-on-year to 5,212 in FY26, down from 5,409 in FY25. During the same period, attrition among permanent employees rose significantly to 51.28 per cent from 40.48 per cent a year earlier.
The reduction was particularly visible across corporate functions. The combined technology and non-technology workforce declined to 1,773 employees in FY26 from 2,052 in the previous fiscal year. Technology teams saw a 15.6 per cent drop in headcount, while non-technology roles contracted by 11.8 per cent.
Despite the decline in permanent staff, Zepto continued to maintain a large frontline workforce. As of 31 March, 2026, the company employed 48,011 operating staff, including pickers, packers, delivery associates and warehouse loaders who support its dark store and last-mile delivery operations.
In its regulatory filing, the company attributed the increase in attrition to workforce churn in operational roles, alongside efforts aimed at improving efficiency across business functions. Zepto also highlighted supply chain streamlining initiatives and greater adoption of automation across several workstreams.
When operating staff are included, the company’s overall attrition rate stood at 73.22 per cent in FY26. The company noted that high turnover is common in operational roles within the quick commerce industry.
The period also witnessed several senior-level exits. The departures came as speculation around the company’s IPO gathered pace.
Even as it navigates workforce challenges, Zepto is pressing ahead with plans to raise Rs 8,010 crore through its initial public offering. The company intends to deploy the capital towards expanding its dark store network, strengthening technology infrastructure, meeting lease-related expenses and supporting marketing initiatives through its marketplace subsidiary.
The developments come amid strong business growth. Zepto more than doubled its annual revenue to Rs 22,623.5 crore in FY26. Quarterly revenue also recorded substantial growth. However, the company continued to remain loss-making, with annual losses widening to Rs 5,905.1 crore during the fiscal year.
