Zepto auto-activates ad campaigns for inactive brands, sellers flag consent and billing concerns

Zepto auto-activates ad campaigns for inactive brands, sellers flag consent and billing concerns

Quick commerce unicorn Zepto has begun auto-activating advertising campaigns for brand partners who don’t have any ongoing ads running on its platform – a move that has raised red flags among sellers over issues of consent, visibility into spending, and the difficulty of opting out.

In a note sent to brand partners, reviewed by Moneycontrol, Zepto informed sellers that it had proactively launched ad campaigns for them to help “maximize reach and performance.” The note targeted brands with no active campaigns and framed the move as a benefit.

“We observed that your brand currently has no active campaigns running on the Zepto Ads Platform. To ensure you continue to benefit from consistent visibility and strong performance, we’ve proactively activated auto campaigns for your account,” the message read.

The company described the feature as ideal for partners who prefer a “low-effort, high-impact approach,” saying the system would automatically optimize targeting and delivery to improve visibility and sales without the need for manual intervention.

“This has been set up with your brand’s success in mind – to keep your presence strong, your performance on track, and your time focused where it matters the most,” the note continued.

A Zepto spokesperson clarified that automated campaigns are extremely rare, accounting for less than 0.1 percent of total ad activations, and are only initiated to support sales performance and maximise growth.

These, the company said, are strictly within pre-approved monthly budgets, which are confirmed over email at the start of each cycle. Brands are immediately informed when any such campaign is activated and retain the ability to monitor, edit, pause or discontinue them at any point, the spokesperson said.

One D2C seller operating on Zepto told Moneycontrol that while Zepto does require monthly ad budget approvals at the start of each cycle, there was little clarity or control once the campaigns went live, especially when handled by account managers. They said ad budgets would often escalate without warning, even for campaigns that were underperforming.

Zepto, however, stressed that all campaign strategies and budgets stem from what has already been agreed upon with brands in advance, and that its platform uses smart bidding and precise targeting to ensure optimal return on ad spend (ROAS). The company said it also conducts monthly billing reviews with key account managers, where all activity is discussed and charges can be waived entirely if a brand raises concerns during reconciliation.

Other sellers said the process of opting out or declining participation in future campaigns wasn’t as straightforward either.

“Yes, there is a way to opt out, but it isn’t easy – you have to work with the account manager and explain why you don’t want to invest. It just felt like another way of taking more money from the account without asking our permission,” explained another seller.

They added that unless explicitly instructed otherwise, Zepto seemed to treat previous participation or wallet balances as consent to restart campaigns.

“You need to call and opt out, but then they’ll reduce your visibility. So you’re essentially being penalised for stepping back,” they said.

According to Zepto, opting out is fully in the brand’s control. Campaigns can be paused or stopped at any time, and no charges are final without the brand’s input. Additionally, the spokesperson said, Zepto may occasionally provide a final “boost” toward the end of a month—again, only within the pre-approved budget framework—to help improve performance, but never without notifying the partner.

Zepto’s communication to brands, however, did not specify default budgets, bidding strategies, creative control, or targeting parameters used in these auto-activated campaigns. Sellers say this makes it difficult to assess whether the campaigns align with their broader marketing goals or return on investment expectations.

“If I don’t know how much is being spent, who it’s reaching, or how the ads are performing until after the fact, then what control do I really have?” asked the founder of another brand operating on Zepto.

The development comes as quick commerce platforms like Zepto and Blinkit push to monetise their seller bases more aggressively through in-app advertising, a model that has become a key source of revenue growth.

Zepto CEO and co-founder Aadit Palicha recently said Zepto’s ad business has grown from an annualised revenue run-rate (ARR) of $40 million to $200 million in the past year – highlighting the strategic importance of ads in Zepto’s overall growth story.

At the same time, Zepto’s plans to tap public markets have been delayed. Sources indicate that the company has postponed its initial public offering (IPO) by about a year and now aims to list in calendar year 2026.

Despite expectations of a draft red herring prospectus (DRHP) filing soon, Zepto is not expected to go public this year as it focuses on reducing cash burn and improving profitability.