Zepto Ends Free Delivery Era, Raises Threshold to Rs 199

Zepto has raised its free delivery threshold to Rs 199, a significant increase from its previous Rs 149. Orders below this amount will incur a Rs 30 delivery fee. This move brings Zepto's pricing in line with competitors like Blinkit and Swiggy's Instamart, ending the pricing advantage it held previously.

During periods of high demand, the minimum order value can climb as high as Rs 299. This recalibration is intended to boost average order values and improve profit margins on smaller purchases. The company had previously experimented with aggressive fee waivers to gain market share.

Zepto has also postponed its initial public offering (IPO). The decision came after domestic mutual funds indicated a valuation significantly lower than the company's expectations. Zepto is now reportedly in discussions to raise approximately $105 million from its current investors at a higher valuation.

As of March 31, Zepto reported substantial cash reserves of Rs 5,681 crore and no outstanding debt. The company's strategic adjustments in delivery fees and financial maneuvers signal a shift in its market approach.