Zepto – Shifts Focus from Order Volumes to Higher AOV to Improve Profitability

Expert Analysis:

• Zepto is shifting away from aggressive order-volume growth and placing greater emphasis on Average Order Value (AOV) as it looks to reduce losses and improve profitability. The shift comes after investors pushed back on its valuation during its earlier IPO attempt.

• The strategy marks a move toward better unit economics, with Zepto looking to encourage larger customer baskets rather than relying primarily on higher order frequency to drive growth.

• Zepto's pivot follows a broader trend among major quick-commerce players, with Blinkit and Swiggy Instamart also prioritising profitability over pure volume expansion.

• The change is particularly important ahead of Zepto's planned renewed IPO attempt in the coming quarters, as the company seeks to demonstrate stronger margins and a more sustainable business model to public-market investors.