Quick commerce platform Zepto has officially initiated its plans for an Initial Public Offering (IPO) by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise approximately ₹11,000 crore through this IPO.
Zepto is pursuing a confidential pre-filing route, which allows them to engage with SEBI and receive initial feedback on the draft document without making it publicly available. This approach provides the company with greater flexibility in its IPO preparations, allowing it to adapt to market conditions before the official public filing.
The IPO is expected to include a fresh issue of equity shares, as well as an offer for sale (OFS) from existing investors. While the exact details of the fresh issue and OFS have not yet been finalized, the move signals a significant step for Zepto as it seeks to tap into the public markets. The listing is tentatively planned for the July-September quarter of 2026. If the IPO goes through, Zepto would be among the youngest Indian startups to list on the stock exchanges.
Founded by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly grown in the quick commerce sector with its promise of delivering groceries in under 10 minutes. The company operates on a quick-commerce model, utilizing hyper-local dark stores, AI-powered logistics, and a user-friendly mobile app. Zepto's business model relies on a network of strategically placed dark stores within neighborhoods to enable rapid delivery. These dark stores are micro-warehouses that allow for faster service by ensuring product availability and timely delivery. As of September 2025, Zepto operated more than 900 dark stores.
Zepto has garnered substantial financial backing from various investors. Prior to its IPO plans, the company closed a $450 million funding round. This latest funding round, led by US pension fund CalPERS, valued the company at approximately $7 billion. Since its inception, Zepto has raised a total of $1.8 billion to $2.3 billion from investors. The company achieved unicorn status in August 2023 after raising $200 million in a Series E round that valued it at $1.4 billion.
Zepto's revenue for fiscal year 2025 was reported at ₹9,669 crore, a 129% increase from the previous year. However, its net loss also nearly tripled to ₹3,367 crore. The company aims to broaden its product categories, adding high-demand items like consumer electronics, apparel, and beauty products. Zepto also intends to expand its Zepto Café.
The quick commerce space is becoming increasingly competitive. Zepto faces competition from other players such as Blinkit (owned by Zomato) and Swiggy Instamart.
