Zepto’s Retention Play: Fewer Discounts, Premium Carts & A Paid Club

Zepto is raising its free delivery threshold to ₹199, has launched Zepto Club memberships and is pushing into premium and gourmet grocery through Select.

The moves point to a shift from low-AOV, high-volume growth towards bigger baskets, customer retention and better unit economics

Zepto’s focus now is on deepening engagement and building retention among existing users, while pushing them into the premium and gourmet grocery funnel to lift basket sizes and order values

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Before we turn the talk to Zepto’s IPO delay and how the company is looking to address the one problem that’s been chiefly highlighted in the run up to the IPO, we need to perhaps revisit one key claim made by Aadit Palicha almost exactly two years ago. 

After raising more than $1 Bn in 2024 at a valuation of $5 Bn, Palicha said investors are backing Zepto’s execution. 

That was August 2024 and since then we can argue that Zepto has vindicated that backing to some extent as its revenue more than doubled to ₹22,623.6 Cr at the end of FY26 from ₹11,109.9 Cr in FY25. But consolidated net loss jumped 26% YoY in FY26 to ₹5,905 Cr from ₹4,699.7 Cr in FY25, which is the other side of that VC balance. And today, it’s arguably the heavier side as Zepto’s IPO plans were put on hold.  

In the weeks since Zepto deferred its $1.2-1.3 Bn public issue, speculation has emerged about the reasons. 

Some put it down to the valuation Zepto was seeking through the IPO. Reports suggested that major mutual funds felt the startup’s $7 Bn private market valuation was not justifiable given the trading multiples for Eternal and Swiggy, the parent companies of Blinkit and Instamart. 

Plus, Zepto’s losses are significantly higher than those two major rivals, so there was some rationale behind this feeling of Zepto asking for a premium valuation without the basis for it.  

What we cannot know is whether these reports based on unnamed sources are necessarily the reason behind the deferment. There could be multiple factors, and in any case, Zepto says it remains committed to listing soon. 

Zepto is now in the process of raising a ₹1,000 Cr round ahead of the proposed listing, which it intends to complete within the timeframe provided by SEBI when it approved the updated draft red herring prospectus in June 2026. 

Nevertheless, the concerns over the rich valuation persist. What is Zepto doing to allay these fears? 

The Zepto Profitability Factor

While Zepto relied on a jump in order volumes, crossing an average of 2.33 Mn orders a day through 1,139 dark stores as of March 2026, it........

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