Quick commerce company Zepto has achieved significant cost savings ahead of its proposed initial public offering, with the most dramatic improvements coming from customer acquisition efficiency rather than logistics optimization. According to the company's draft red herring prospectus (DRHP), digital marketing costs per order dropped sharply from ₹33.75 in FY25 to ₹4.31 in FY26, before falling further to ₹1.01 per order in the quarter ended March 2026. This represents the largest per-order cost improvement disclosed in the filing and has played a significant role in improving overall unit economics as the company prepares to tap public markets.
While marketing cost reductions dominated the improvements, Zepto also achieved notable savings in supply chain operations. The company's supply chain variable cost per order declined from ₹63.03 in the June 2023 quarter to ₹61.24 in the March 2026 quarter, representing a reduction of ₹1.79 per order. According to the filing, these improvements were attributed to higher dark-store productivity, improved vehicle utilization, shorter average delivery distances, greater use of electric two-wheelers and deployment of in-house technology systems. Average delivery distance per order fell from 2.17 kilometres to 1.83 kilometres during the period.
The company has demonstrated rapid acceleration in cost reduction, with total cost per order falling from ₹181 in Q2 FY26 to ₹128 in Q4 FY26 across just two quarters, according to the latest filing. Adjusted EBITDA per order improved from a loss of ₹110 to a loss of ₹59 per order in the same period, while free cash flow per order narrowed from negative ₹110.8 to negative ₹46. As reported by Business Standard, CEO Kaivalya Vohra attributed these gains to automation systems that have increased throughput from 1,500 to 2,140 orders per day per dark store, with plans to further scale operations. The company is investing in advanced automation technologies including Put to Light sorting stations, linear sorters and automated weighing systems, while developing AI-powered warehouse picking and robotics for product movement.
According to the company's filing, Zepto claims to be the fastest-growing quick-commerce platform in India by order volume between FY24 and FY26 among scaled players, as reported by Redseer. The company's pitch to public investors rests on its technology-driven competitive advantage, with Vohra emphasizing that "the delta between us and our peers is all this — the cost." The company's in-house last-mile delivery platform manages rider onboarding, supply-demand matching, route optimization using maps and weather data, helping improve productivity and delivery reliability. Looking ahead, Zepto is developing AI-powered warehouse picking, robotics for product movement, voice-based shopping tools, and an AI-driven software development platform to further enhance efficiency and margins as it scales operations across India's competitive quick-commerce market.
