For many D2C brands, Zepto is proving to be more mirage than promised land

The founder of the beverage startup stared at the numbers, but they made no sense. After spending Rs 15 lakh on advertising to generate just about Rs 3 lakh in sales on Zepto, he knew it was time to quit. While his main gripe was with advertising costs that made no business sense, other founders faced an even bigger problem—getting their unsold products from the quick commerce startup’s warehouses.

“I've had to spend Rs 15 lakh to make just Rs 3 lakh in sales,” the founder said on condition of anonymity. Like many others, he represents the growing frustration among D2C brands with Zepto’s platform dynamics.  

His problem is the latest in a growing list of troubles for Zepto. In Maharashtra, authorities recently ordered the shutdown of Zepto Cafe over hygiene concerns at some of its dark stores. Then there is anger over what many claim are dark patterns that manipulate how customers behave and spend on its app. All this when the startup is reportedly raising $700 million at a $7.4 billion valuation in the last funding round ahead of its 2026 IPO.