Zepto halves free delivery threshold and scraps surge charges in major pricing overhaul

In a move to make shopping cheaper, Zepto has scrapped handling and surge fees across all orders. 

Zepto has also slashed the minimum order value for free delivery to ₹99 from the earlier ₹199. For orders below ₹99, a flat ₹30 delivery fee applies, with no small cart or convenience charges. 

Part of its new ‘All New Zepto Experience’ initiative, this pricing revamp positions Zepto as one of the most cost-effective quick commerce platforms, outpacing rivals like Blinkit and Instamart that still levy various fees. 

The app now promotes zero handling fees, zero delivery charges (for orders above ₹99), and zero surge or rain charges. 

This overhaul follows Zepto’s $450 million (approx. ₹3,757 crore) fundraise led by the California Public Employees’ Retirement System (CalPERS). 

“We’ve closed nearly $450 million, and most of that is primary. The valuation of the company was $7 billion by the time it closed. A couple of investors participated, but the largest cheque individually came from CalPERS…We are considering it a pre-IPO round, and we are hoping to file our IPO soon,” Zepto CEO Aadit Palicha told PTI. 

“We now have approximately $900 million of net cash in the bank and are more than well-capitalised for the future,” he added. 

Zepto last raised $350 million in November 2024 at a $5 billion valuation. The company, founded in 2021 by Stanford dropouts Palicha and Kaivalya Vohra, operates across major Indian cities and currently delivers around 1.7 million orders a day.