Quick commerce firm Zepto’s improving unit economics ahead of its proposed initial public offering have been driven more by a sharp reduction in customer acquisition costs than by logistics efficiencies, according to its draft red herring prospectus (DRHP).

The company disclosed that its digital marketing cost 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. The decline comes as Zepto relies increasingly on repeat customers and benefits from its Everyday Low Prices (EDLP) strategy, reducing the need for aggressive user acquisition spending.

The reduction in marketing expenses stands out as the largest per-order cost improvement disclosed in the filing and has played a significant role in improving the company’s overall unit economics as it prepares to tap public markets.

In comparison, savings from supply chain operations have been relatively modest. Zepto’s supply chain variable cost per order declined from ₹63.03 in the June 2023 quarter to ₹61.24 in the March 2026 quarter, a reduction of ₹1.79 per order.

The company attributed the improvement in supply chain costs to higher dark-store productivity, improved vehicle utilisation, shorter average delivery distances, greater use of electric two-wheelers and the deployment of in-house technology systems. Average delivery distance per order fell from 2.17 kilometres to 1.83 kilometres during the period.

Zepto has also reduced its reliance on third-party software vendors by developing in-house tools for warehouse management, workforce planning, customer support and search functions, helping lower operating expenses.

Overall, total cost per order fell from ₹156.69 in the June 2023 quarter to ₹127.79 in the March 2026 quarter, reflecting a nearly ₹29 improvement.

The figures suggest that while logistics optimisation remains important in quick commerce, Zepto’s most significant lever for improving profitability has been customer retention and marketing efficiency. As competition intensifies across the sector, the company’s ability to generate higher order volumes while sharply reducing acquisition costs is emerging as a key driver of its path towards profitability.

Published on June 20, 2026