Quick-commerce unicorn Zepto has received approval from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering (IPO), according to sources familiar with the matter. The company is expected to file an updated draft red herring prospectus (DRHP) within the next six to eight weeks.

The Bengaluru-based startup had confidentially filed its draft papers with the market regulator in December 2025.

Led by co-founder and CEO Aadit Palicha, Zepto is reportedly looking to raise around ₹11,000 crore through a combination of a fresh issue of equity shares and an offer for sale (OFS) by existing investors. The proceeds from the fresh issue are expected to be used for expansion, strengthening the balance sheet, and funding future growth initiatives.

Founded by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly emerged as one of India’s leading quick-commerce platforms, building its business around 10-minute grocery deliveries through a dense network of dark stores.

The company was last valued at nearly $7 billion (around ₹60,000 crore) after raising $450 million in October this year. The funding round marked a valuation jump of nearly 40% compared with its previous fundraise in November 2024. According to a recent report by Elara Capital, the higher valuation brings Zepto closer to Blinkit and places it ahead of Instamart on several growth metrics.

For the financial year ended March 31, 2025, Zepto reported a sharp rise in revenue, although losses widened significantly as the company continued investing aggressively to scale operations in India’s intensely competitive quick-commerce market.

Total sales, including other income, surged 129% year-on-year to ₹9,668.8 crore in FY25 from ₹4,223.9 crore in FY24. However, net losses expanded 177% to ₹3,367.3 crore, compared with ₹1,214.7 crore in the previous financial year.

In comparison, Blinkit, owned by Eternal, reported revenue of ₹5,206 crore in FY25, while Swiggy reported ₹2,252 crore from Instamart during the same period.

Investment banks including Axis Capital, Morgan Stanley, HSBC, Goldman Sachs, and Motilal Oswal are understood to be advising the company on the proposed IPO.

Besides Zepto, Sebi has also cleared the IPO proposals of Dhoot Transmission; Surgiwear, a leading domestic maker of implantable medical devices; Blackstone-backed Horizon Industrial Parks; Crystal Crop Protection, an integrated agri-solutions platform; and Hotel Polo Towers, a hospitality player.