India, Sept. 1 -- Zepto's Retention Playbook

After postponing its IPO in July, Zepto is now trying to fix its unit economics. The quick commerce giant is pulling back on discounts, increasing free-delivery thresholds and pushing a paid loyalty programme to chase profitability. But why is it suddenly tightening the leash?

Zepto's Many Problems: Zepto's IPO deferment stemmed from valuation concerns. Investors baulked at the startup's $7 Bn valuation, citing high cash burn and industry-lowest AOV of Rs.387. On top of this, its transacting user base shrank by more than 3% QoQ to 47.97 Mn in Q4 FY26. Compounding this pressure, Zepto had a free cash flow of Rs.4,330 Cr at the end of March 2026, leaving it with just over one year of runway.

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