Zepto drops delivery, handling fees after $450m funding
- ByStartupStory | November 3, 2025
Zepto Drops Delivery and Handling Fees Following $450 Million Funding Boost
Quick commerce platform Zepto has revamped its pricing model by eliminating all handling fees, surge charges, and convenience fees across its app, while offering free delivery on orders above ₹99—the lowest free delivery threshold in the market. For orders below ₹99, customers will be charged a flat delivery fee of ₹30, with no small cart charges or additional fees, including on cigarette and tobacco orders.
This new pricing strategy, branded as the “All New Zepto Experience,” significantly undercuts rival platforms Blinkit and Swiggy Instamart. For example, Blinkit charges a total of ₹54 in fees for small orders (₹30 delivery, ₹4 handling, ₹20 small cart fee), while Instamart imposes around ₹65, including delivery, handling, small cart fees, and GST. Zepto’s aggressive cost reduction makes it one of the most affordable quick-commerce options in India’s increasingly crowded last-mile delivery segment.
The move follows Zepto’s recent $450 million funding round led by the California Public Employees’ Retirement System (CalPERS), along with participation from General Catalyst, Goodwater Capital, and Lightspeed Venture Partners. Zepto CEO and co-founder Aadit Palicha described the raise as largely primary capital, considering it a pre-IPO round that leaves the company well-capitalized with approximately $900 million in net cash to fuel further expansion.
Founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, Zepto operates a network of dark stores promising grocery deliveries in minutes across major Indian cities, currently handling around 1.7 million orders per day, with most stores already profitable.
Industry experts predict that Zepto’s fee cuts will intensify the ongoing price battle in quick commerce, driving further discounting and competition as platforms vie for market dominance through affordability and service speed.
In summary, Zepto’s elimination of platform fees and reduction of delivery charges repositions it as a leader in cost-effective fast commerce in India, leveraging its strong cash position post-funding to accelerate growth and outpace competitors in a fiercely contested sector.
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