In a major move that underscores its ambitions in the B2B supply chain space, Zomato Hyperpure Leases New Warehouse Near Mumbai. This expansive facility, located at Lodha Industrial and Logistics Park in Palava, marks a significant milestone for Zomato’s kitchen solutions arm, Hyperpure. The warehouse spans an impressive 253,421 square feet, solidifying Zomato’s commitment to enhancing its logistics infrastructure to meet growing demand.
Expanding Horizons: Zomato Hyperpure’s Ambitions
Zomato, the foodtech giant founded in 2008 by Deepinder Goyal and Pankaj Chaddah, began as an online restaurant discovery platform. Over the years, it has grown into a multifaceted business, including food delivery, quick commerce, and B2B supply through Hyperpure. Hyperpure caters to restaurants by supplying fresh produce, groceries, and value-added products, with Q2 FY25 revenue doubling to ₹1,473 crore. This exponential growth is a testament to Zomato’s ability to innovate and expand its service portfolio.
Details of the New Warehouse Lease
Zomato’s latest lease agreement with the Lodha Group is for a five-year period, beginning February 15, 2025. The monthly rent for this warehouse stands at over ₹85.3 lakh, with a 5% annual escalation clause. By the fifth year, the monthly rent is projected to rise to approximately ₹1.04 crore. To secure this deal, Zomato paid a four-month security deposit during the signing of the lease agreement in December 2024.
The Lodha Industrial and Logistics Park, part of the Mumbai Metropolitan Region (MMR), is a strategic location offering state-of-the-art facilities. This industrial hub is actively expanding, with plans to develop over 6.5 million square feet of warehousing and industrial spaces across major Indian cities, including Chennai and Delhi NCR.
Strategic Importance of the Mumbai Warehouse
The new warehouse’s location near Mumbai is no coincidence. The MMR is a crucial logistics hub due to its proximity to ports, airports, and a vast network of highways. Zomato For Hyperpure, means faster delivery times, reduced transportation costs, and better service for restaurant partners.
Moreover, the facility’s large scale will support Hyperpure’s recently launched ‘Express’ delivery service, which promises to deliver products within 30 minutes to four hours. This service aims to cater to the time-sensitive needs of restaurant operations, enhancing efficiency and reliability.
Funding and Future Plans
Zomato’s aggressive expansion is backed by substantial funding. In November 2024, the company raised ₹8,500 crore (≈ $1 billion) through a Qualified Institutional Placement (QIP). Of this, approximately ₹2,137 crore has been earmarked for developing Blinkit’s dark stores and Hyperpure’s warehouses.
This funding aligns with Zomato’s broader strategy to strengthen its quick commerce and B2B supply chain operations. The company’s QIP document emphasized the critical role of an extensive network of dark stores and warehouses in driving growth for both verticals.
Growth and Industry Context
The Indian warehousing sector is experiencing a boom, driven by increasing demand from e-commerce, FMCG, and foodtech companies. According to Knight Frank India, the top eight cities leased 37.5 million square feet of warehousing space between January and September 2024, marking a 4% year-on-year increase. As the occupier base diversifies, companies like Zomato are seizing opportunities to establish a stronghold in strategic locations.
For Hyperpure, this growth trajectory reflects a broader trend in the B2B segment. The focus on providing high-quality, consistent supplies to restaurants not only strengthens partnerships but also builds customer trust. Additionally, plans to set up processing plants for value-added food supplies will further enhance Hyperpure’s service offerings, catering to the evolving needs of restaurant partners.
Background of Zomato and Hyperpure
Zomato’s journey from a restaurant discovery app to a global foodtech leader is inspiring. Deepinder Goyal’s vision and leadership have steered the company through various challenges, including market competition and economic downturns. Hyperpure, launched as a complementary arm to Zomato a core business, has been instrumental in diversifying its revenue streams.
The idea behind Hyperpure was simple yet powerful: to provide restaurants with a one-stop solution for all their kitchen needs. This focus on quality and reliability has helped Hyperpure carve a niche in the competitive B2B market. Today, it serves thousands of restaurants across India, enabling them to focus on their core operations without worrying about supply chain challenges.
Learning for Startups and Entrepreneurs
- Diversify Revenue Streams: Zomato’s success with Hyperpure demonstrates the importance of exploring new business verticals to mitigate risks and ensure sustainable growth.
- Leverage Strategic Locations: The choice of warehouse locations can significantly impact logistics efficiency and cost-effectiveness. Strategic planning in this area is crucial.
- Focus on Customer Needs: Hyperpure’s ‘Express’ delivery service highlights the value of understanding and addressing customer pain points.
- Invest in Infrastructure: Robust infrastructure, like warehouses and processing plants, lays the foundation for scaling operations effectively.
- Capitalize on Market Trends: Keeping a pulse on industry trends, such as the growth in warehousing demand, can help businesses stay competitive.
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