Zepto’s New Game Plan, Layoffs At Zomato & More

Zepto’s Retention Playbook 

After postponing its IPO in July, Zepto is now trying to fix its unit economics. The quick commerce giant is pulling back on discounts, increasing free-delivery thresholds and pushing a paid loyalty programme to chase profitability. But why is it suddenly tightening the leash?

Zepto’s Many Problems: Zepto’s IPO deferment stemmed from valuation concerns. Investors baulked at the startup’s $7 Bn valuation, citing high cash burn and industry-lowest AOV of ₹387. On top of this, its transacting user base shrank by more than 3% QoQ to 47.97 Mn in Q4 FY26. Compounding this pressure, Zepto had a free cash flow of ₹4,330 Cr at the end of March 2026, leaving it with just over one year of runway. 

These issues appear to have forced a critical re-evaluation of its aggressive scale-first strategy. But how is Zepto trying to fix these issues?

Zepto Ditches Discounts: The quick commerce major has raised its free-delivery threshold to ₹199 for normal hours and up to ₹299 during peaks, aligning with its rivals. Platform-led discounts have fallen from 18-20% of MRP at the time of IPO filing to 14-16% now, with further moderation expected. The goal: Lift net order value, even if some small-ticket volumes migrate to other alternatives.

The Premium Push: The unicorn recently launched Zepto Club, a paid membership plan that offers cashback, priority service and exclusive discounts. The move shifts incentives behind a paywall, targeting retention over acquisition. Simultaneously, Zepto Select is pushing premium and gourmet groceries to lift basket sizes and margins.

The Execution Test: Zepto no longer leads with its “everyday low prices” pitch. Instead, it’s betting on subscriptions, premiumisation and disciplined discounting to narrow losses. Without the safety nets that rivals Blinkit and Instamart have, the pressure is higher on the Aadit Palicha-led platform. So, can Zepto prove its execution edge and deliver profitability alongside growth? Let’s find out…

From The Editor’s Desk

Layoffs At Zomato

• Eternal’s food delivery arm has shut down its customer support operations in Hyderabad and fired around 240 employees. Following the closure, Zomato’s remaining in-house customer support team will be consolidated in Gurugram.
• The move is part of Zomato’s bid to overhaul its customer support operations. In April last year, the company laid off around 600 employees across Gurugram and Hyderabad, citing AI-led automation.
• Separately, Zomato announced a ban on dishes containing analogue dairy products, warning non-compliant restaurants that they would be delisted. Eateries have also been directed to either transition to natural dairy products or remove items

Purple Style Labs’ IPO Day 1

• The Pernia’s Pop Up Shop parent’s public issue was subscribed to by only 8% by the end of the first day of bidding. Retail investors accounted for most of the demand, subscribing their quota by 39%, while NIIs subscribed their portion by 4%. 
• Meanwhile, enterprise cloud company ESDS Software Solution’s IPO was subscribed 18.34X on the second day, receiving bids for 22.65 Cr shares against the 1.24 Cr shares on offer.
• Purple Style Labs’ public consists solely of a fresh issue of shares worth up to ₹680 Cr, with no OFS component. ESDS’ ₹720 Cr IPO also comprises only a fresh issue of shares. Both companies are looking to list on the BSE and the NSE.

Satvacart Shuts Down

• The decade-old online grocery startup has shut down and disbanded its team after failing to secure growth capital. The startup explored funding, strategic investment and acquisition opportunities before deciding to wind up operations. 
• Founded in 2014, Satvacart started as an online grocery delivery startup, offering groceries and other essentials to consumers in Gurugram. It subsequently pivoted to quick commerce. It raised $2 Mn before shutting down.
• Satvacart joins a growing list of Indian startups that have shut shop in 2026. Social networking platforms Medial and PicSee shut shop earlier this year, followed by quick commerce startup Klydo and online matchmaking platform Juleo.

Rumblings Continue At Bira91

• The alcobev brand is facing a fresh insolvency scare. Glass manufacturer Hindusthan National Glass & Industries has served a default notice to Bira91 over alleged unpaid dues to the tune of ₹11.8 Cr. 
• HNGIL claims to have manufactured 51 Lakh customised glass bottles for Bira91, but the orders were not allegedly lifted by the brewer. The notice gives B9 Beverages 10 days to clear the dues or bring on record evidence of a pre-existing dispute. 
• The fresh insolvency threat comes as Bira 91 continues to grapple with a severe financial crisis. The company has been out of production since September 2025 amid mounting debt, outstanding employee and vendor dues, and the ouster of the founder.

E2W Sales Take A Hit In August

• Electric two-wheeler registrations declined 16.2% to 1.72 Lakh units in August as against 2.05 Lakh units in July. This was the second consecutive month of decline. On A YoY basis, registrations jumped 64% from 1.05 Lakh units in the year-ago period.
• Market leader TVS Motor led the charge and clocked 46,587 registrations, despite a substantial 17% MoM dip. Meanwhile, Bajaj Auto continued to strengthen its position in the market and processed 45,861 E2W registrations, taking its market share to 22.5%. 
• New-age EV player Ola Electric also saw a 7.7% MoM decline in registrations during the month to 13,132 units, while Ather recorded 27,218 registrations, down 11% from 30,632 in July. 

Inc42 Markets

Inc42 Startup Spotlight

Can Vimag Labs Eliminate Rare Earth Magnets In EV Motors?

India’s heavy dependence on Chinese rare earth magnets leaves the local auto industry exposed to supply disruptions and export restrictions. Vimag Labs is tackling this vulnerability with a platform that replaces permanent magnets with a virtual, real-time controlled magnetic field.

Vimag’s Virtual Magnets: Founded in 2025, Vimag Labs has developed a virtual magnet synchronous motor (VMSM), which uses copper windings, steel and power electronics to generate a magnetic field that is continuously adjusted by proprietary control algorithms. This eliminates slip rings while maintaining a brushless synchronous motor design. 

From Patents To Pilots: Having secured multiple Indian patents for its motor platform, Vimag Labs claims to have completed over 87,600 engineering hours on the core architecture. It has also piloted its offering with multiple OEMs. The startup targets sectors such as EVs, industrial equipment, defence and energy systems.

Global Ambitions: Backed by Accel, the startup also operates development centres in Germany, the US and Poland. Going forward, it plans to expand manufacturing in India and launch products across multiple EV categories over the next year. With the homegrown rare earth magnet market projected to grow to $1 Bn by 2034, can Vimag Labs help India break its reliance on Chinese magnets?

Infographic Of The Day

Sachin Bansal isn’t just building Navi. He has quietly amassed stakes in many Indian startups, from Ather to Unacademy. Here are Bansal’s many bets beyond Flipkart…

The post Zepto’s New Game Plan, Layoffs At Zomato & More appeared first on Inc42 Media.