Zepto introduces platform fee on every order to boost profitability

Quick commerce firm Zepto has started charging a platform fee of Rs 2 on every order in a bid to boost profitability as it eyes a public listing by 2025.

Zepto follows its competitors Swiggy and Zomato to roll out an additional fee to boost revenue per order. The firm also charges a handling fee ranging from Rs 2 to Rs 15 depending on the size of the order.

Zepto recently launched its loyalty programme Zepto Pass to provide unlimited free deliveries and up to 20% discount on all grocery products, aiming to improve customer experience and match prices with offline grocers.

In response to YourStory’s query, a Zepto spokesperson said, “We don’t believe in being over dependent on delivery fees to be profitable. We believe in core operating efficiency and cost reduction to be profitable. We are on track to achieve the EBITDA positive milestone even with much lower delivery fees—Zepto Pass is the quintessential example of this.”

Zepto's revenue in FY23 grew 14X to Rs 2,024 crore from Rs 142.4 crore a year ago. However, the Mumbai-based company faced a loss of Rs 1,272 crore, compared to a loss of Rs 390.4 crore posted in the previous year.

Last year, Zepto entered the coveted unicorn club after raising $200 million, at a valuation of $1.4 billion, in a Series E funding round led by US-based private market investment firm StepStone Group. 

Zepto is looking to float an initial public offering (IPO) by early 2025, making its push for sustainable growth more important than ever. 

In August last year, Co-founder and CEO Aadit Palicha noted that the $200-million fundraising was a pre-IPO round and part of a “capital-building exercise”, though he did not divulge details about how much money the firm is looking to raise through the public listing.