The disclosure provides an approach for reducing congestion within a network, the network comprising a plurality of subnets, the plurality of subnets comprising a plurality of host machines and a plurality of virtual computing instances (VCIs) running on the plurality of host machines. Embodiments include receiving, by an edge services gateway (ESG) of a first subnet of the plurality of subnets, membership information for a group identifying a subset of the plurality of host machines. Embodiments include receiving a multicast packet directed to the group and selecting from the plurality of host machines, a replicator host machine for the multicast packet. Embodiments include sending, to the replicator host machine, the multicast packet along with metadata indicating that the replicator host machine is to replicate the multicast packet to remaining host machines of the subset of the plurality of host machines identified in the membership information for the group.