Quick commerce startup Zepto is reportedly planning to confidentially file its draft red herring prospectus (DRHP) with market regulator SEBI on December 26, with the aim of listing on stock exchanges sometime in 2026. If successful, Zepto, founded in 2020 by Aadit Palicha and Kaivalya Vohra, could become one of the youngest Indian startups to go public.
The confidential filing strategy allows Zepto to complete initial IPO stages away from public scrutiny, managing sensitive financial and strategic details before wider release. Zepto's IPO is expected to include a fresh issue of shares along with an offer for sale (OFS) from early investors. The IPO is expected to raise around $500 million. While the final valuation is yet to be determined, the company was last valued at approximately $7 billion during its private funding round earlier this year.
Several investment banks are expected to be involved in the IPO process, including Axis Bank, Motilal Oswal Investment Advisors, Morgan Stanley, HSBC, and Goldman Sachs.
Zepto's potential listing marks a pivotal moment for the quick commerce industry, potentially bringing three of the sector's top players into the public domain. Competitors like Blinkit (operated by Eternal) and Swiggy (with its Instamart service) already have a significant market presence. As of December 25, Eternal has a market capitalization of about $30 billion, while Swiggy's market cap is around $12 billion.
Zepto's revenue has seen substantial growth, with FY25 revenue increasing by 149% to ₹11,110 crore compared to ₹4,454 crore in FY24. The company's aggressive growth is attributed to disciplined expansion and efficient execution. Zepto's FY25 performance was supported by a $3 billion annualised Gross Order Value (GOV) and a reduction in losses. In FY24, Zepto's losses amounted to ₹1,248 crore, implying the company spent ₹1.29 to earn every ₹1 in revenue.
The quick commerce platform operates over 250 dark stores across ten metropolitan areas in India. The company aims to increase its presence to 700 dark stores and expand into Tier 2 and Tier 3 cities. Zepto also plans to broaden its product categories and expand its Zepto Cafe.
In October 2025, Zepto raised $450 million in a funding round led by the California Public Employees' Retirement System (CalPERS), valuing the company at $7 billion. Zepto plans to use the funds to maintain a healthy balance sheet and support moderate expansion. CEO Aadit Palicha mentioned the company had approximately $900 million in net cash and was well-capitalized for the future. Zepto's investors include Nexus Venture Partners, Y Combinator, and Glade Brook Capital.
Zepto has secured board and shareholder approval to shift from a private to a public company. The resolution for conversion was cleared by shareholders on November 21.
