Zepto IPO: Quick commerce firm files confidential draft papers with Sebi; targets ₹11,000 cr public issue

Quick commerce major Zepto has filed a confidential draft prospectus with the Securities and Exchange Board of India (Sebi) to raise capital via the initial public offering (IPO) route, sources close to the development told Fortune India.

The Aadit Palicha-led company is looking to raise about ₹11,000 crore through a mix of a fresh issue of equity shares and an offer for sale (OFS) by early investors, the sources added. Proceeds from the fresh issue are expected to support expansion, strengthen the balance sheet, and fund growth initiatives.

The development follows shareholder approval for the IPO, which was granted at an extraordinary general meeting held on December 23. As part of its public-market preparations, Zepto has also moved to convert itself into a public limited company.

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

The company was last valued at around $7 billion (approximately ₹60,000 crore) following a $450 million fundraising in October this year. The round marked a nearly 40% jump in valuation from the previous funding in November 2024. According to a recent Elara Capital report, the valuation uplift places Zepto closer to Blinkit and positions it ahead of Swiggy’s Instamart on key growth metrics.

For the financial year ended March 31, 2025, Zepto reported more than double growth in sales, even as losses widened sharply, as the unicorn invested heavily to scale operations in India’s fiercely competitive quick-commerce segment.

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

In comparison, Blinkit, owned by Eternal, posted revenue of ₹5,206 crore in FY25, while Swiggy reported ₹2,252 crore for 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.

Zepto’s IPO plans come at a time of intensifying competition in India’s quick-commerce space, with rivals such as Blinkit and Swiggy Instamart also scaling up operations amid growing investor interest in the sector.

Domestic brokerage Emkay Global, in a recent report, said the market remains cautious about the long-term profitability of quick-commerce (QCom) businesses as competitive intensity in the segment continues to rise. It noted that platforms have multiple margin-enhancing levers, including advertising income from brands, monetisation of sampling and market research, a higher contribution from private labels, and expansion into high-margin categories such as fashion, electronics, and stationery.

The brokerage cautioned that competitive intensity in QCom is accelerating as a broader set of players targets the segment as the next growth engine for retail consumption. Horizontal e-commerce players such as Amazon and Flipkart, big-box retailers including JioMart and DMart Ready, and established QCom operators like Blinkit, Instamart, and Zepto are all investing in dedicated quick-commerce supply chains.