Zepto Files Confidential IPO Papers with SEBI, Targets Up to $1.3 Billion Listing
Quick commerce startup Zepto has taken a major step toward going public after filing confidential draft papers with the Securities and Exchange Board of India...
Quick commerce startup Zepto has taken a major step toward going public after filing confidential draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) that could raise up to $1.3 billion (approximately ₹11,000–12,000 crore), according to people familiar with the matter.
The move positions Zepto as the youngest venture capital-backed new-age company in India to pursue a public listing, underscoring both the rapid rise of quick commerce and investor confidence in the sector despite mounting concerns around profitability.
IPO Structure and Timeline
Sources indicate that Zepto plans to raise around ₹11,000 crore through fresh equity, while the remaining portion of the issue will consist of secondary share sales by early investors. The company has chosen the confidential filing route, which allows issuers to tweak the size and structure of the IPO before making documents public—a path earlier adopted by companies such as Swiggy, Meesho and Groww.
Zepto received shareholder approval for the IPO at an extraordinary general meeting on December 23. The company is targeting a market debut in the July–September quarter of 2026, people aware of the plans said.
Zepto did not respond to media queries on the development.
A Young Startup Racing to Public Markets
Founded just four years ago, Zepto is moving faster toward an IPO than earlier startup cohorts. Companies like Ola Electric and Honasa Consumer took six to seven years after incorporation to go public.
The decision comes after a robust IPO market in 2025, which has encouraged several digital-first companies—including PhonePe, Flipkart, Shadowfax, Shiprocket and Curefoods—to prepare for listings next year.
Investment banks managing Zepto’s IPO include Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal.
Financials: Rapid Growth, Rising Losses
In regulatory filings submitted to the Registrar of Companies, Zepto reported revenue of ₹9,669 crore for FY2024–25, marking a sharp 129% year-on-year increase. However, losses widened significantly, with net losses rising to ₹3,367 crore, nearly three times the ₹1,214 crore recorded the previous year.
The company’s aggressive expansion and customer acquisition strategy—characterised by steep discounts and the removal of certain platform fees—has driven growth but also intensified cash burn.
Recent Fundraising and Valuation
In October, Zepto raised $450 million through a mix of primary and secondary transactions, valuing the company at around $7 billion. About $300 million of that round was fresh capital, which the company used to step up competition and boost order volumes.
As of late November, Zepto reportedly had around ₹7,000 crore in cash reserves, significantly lower than rivals Eternal (Blinkit) and Swiggy, which are estimated to hold ₹17,000–18,000 crore each.
Competitive Landscape: A Crowded Quick Commerce Battle
Based in Bengaluru, Zepto operates in a fiercely competitive market alongside Blinkit (owned by Eternal), Swiggy Instamart, Flipkart Minutes, and Amazon Now. Both Swiggy and Eternal are already listed entities, adding public-market scrutiny to the sector.
A September note by BofA Securities estimated that Blinkit controls over 50% of India’s quick commerce market, with Zepto and other players sharing the remainder.
Swiggy, Zepto’s closest rival, recently raised ₹10,000 crore via a qualified institutional placement, after having largely spent the proceeds of its November IPO. Eternal, meanwhile, raised ₹8,500 crore in 2024.
Investor Appetite and Sustainability Questions
While public markets have so far backed quick commerce expansion, industry leaders are signalling caution. In a recent interview, Blinkit CEO Albinder Dhindsa said that investors’ willingness to fund rapid expansion through balance sheets may be limited going forward, and that the sector will increasingly face scrutiny over sustainable growth and profitability.
Zepto’s IPO, therefore, is likely to be seen as a test case for how public investors value high-growth but loss-making quick commerce companies.
Strategic Reset Ahead of Listing
The IPO plan has been in the works since early this year but was briefly put on hold as Zepto opted for private fundraising instead. That round was led by US pension fund CalPERS, with participation from existing investors including Lightspeed, General Catalyst and Avenir Growth. Earlier this year, the company also shifted its headquarters back to India from Singapore, aligning its corporate structure with listing requirements.
As Zepto moves closer to the public markets, its ability to balance growth, competition and financial discipline will be central to how investors assess the future of India’s fast-evolving quick commerce ecosystem.