In a bid to capture a larger share of the competitive quick commerce market, Zepto is extending its offerings beyond its signature 10-minute delivery model with the introduction of its new service, ‘SuperSaver.’
This strategic move aims to enhance the company’s average order value (AOV) and close the gap with market leader Blinkit.
The ‘SuperSaver’ service, currently available in Bengaluru, targets budget-conscious and bulk-buying customers. It offers competitive pricing and waives delivery charges on orders exceeding INR 1000.
However, unlike Zepto’s traditional delivery promise of 10-15 minutes, SuperSaver has a slightly extended delivery time of 20-30 minutes. This service is also tailored for monthly grocery replenishments.
Zepto’s new initiative seeks to differentiate itself from competitors like Blinkit, which dominates the quick commerce segment with a higher AOV of INR 625 for the quarter ending June.
Zepto’s approach emphasizes affordable pricing, aiming to appeal to a broader market segment compared to Blinkit’s premium assortment strategy.
The launch of SuperSaver coincides with a promotion of Zepto’s membership pass.
Normally priced at INR 299, the membership is currently offered at a discounted rate of INR 1, which eliminates delivery charges on orders over INR 100.
This move is part of Zepto’s broader strategy to attract and retain more customers through cost-effective solutions.
The quick commerce sector is witnessing a flurry of activity as companies prepare for the festive season.
Major players such as Blinkit and Swiggy Instamart are expanding their dark store networks and diversifying their product offerings to include larger ticket items like electronics and fashion.
Zepto, founded in 2021 by Palicha and Kaivalya Vohra, has been aggressively scaling its operations.
The company recently raised $340 million in a follow-on financing round led by General Catalyst, boosting its valuation to $5 billion.
This follows a significant $665 million pre-IPO funding round in June, which increased its valuation to $3.6 billion.
In addition to its fundraising efforts, Zepto is preparing for an initial public offering (IPO) expected next year.
The company has seen impressive growth, with its operating revenue surging 14.3 times to INR 2,024.3 crore for the fiscal year 2022-23.
Despite this growth, Zepto reported a substantial increase in net loss, which jumped 3.4 times year-on-year to INR 1,272.4 crore.
