Zepto Prepares for Dalal Street Debut, Files Confidential Draft Papers for $1.3 Billion IPO
Sat Dec 27 2025
India’s quick commerce leader Zepto has taken its first formal step toward going public, reportedly pre-filing confidential draft papers with SEBI for an initial public offering (IPO) exceeding $1.3 billion (around ₹11,600 crore), according to an Economic Times report.
The proposed IPO is expected to include a fresh issue of approximately ₹11,000 crore, with the remaining portion likely coming through an offer for sale (OFS) by early investors. The move received shareholder approval at an extraordinary general meeting held on December 23.
Targeting a 2026 Listing via Confidential Route
Founded just four years ago, Zepto is eyeing a July–September 2026 listing, which could make it India’s youngest venture-backed new-age startup to list on domestic stock exchanges.
The company has opted for SEBI’s confidential filing route, a mechanism that allows issuers to:
- Fine-tune IPO size and structure closer to launch
- Reduce public scrutiny during early preparation stages
This route has previously been used by startups such as Swiggy, Meesho, and Groww.
Reported bankers for the issue include Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal.
Intensifying Competition in Quick Commerce
Zepto’s IPO preparations come amid intense competition in India’s fast-growing quick commerce segment.
Key rivals include:
- Blinkit (owned by Eternal)
- Instamart (Swiggy)
- Flipkart Minutes
- Amazon Now
- BigBasket
Competitors have also been actively raising capital. Swiggy recently raised ₹10,000 crore via a QIP, while Eternal raised ₹8,500 crore in 2024. The capital arms race highlights how quick commerce remains both strategically important and capital-intensive.
Financial Performance: High Growth, High Burn
According to filings with the Registrar of Companies:
- FY25 revenue: ₹9,669 crore (129% YoY growth)
- FY25 net loss: ₹3,367 crore (vs ₹1,214 crore in FY24)
The widening losses underline the heavy investment required in dark stores, logistics, and customer acquisition.
As of late November, Zepto reportedly held around ₹7,000 crore in cash, compared to an estimated ₹17,000–18,000 crore with Swiggy and Eternal.
Recent Fundraise and Expansion Push
In October 2025, Zepto raised $450 million in a mix of primary and secondary capital, valuing the company at around $7 billion.
- Lead investor: CalPERS
- Other participants: Lightspeed Venture Partners, General Catalyst, Avenir Growth
- Primary capital: ~$300 million
Following this round, Zepto shifted back into growth mode after a period of cost optimisation.
From KiranaKart to 10-Minute Delivery
Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto started as KiranaKart, a 45-minute delivery service for neighbourhood stores.
Key milestones:
- Pivoted to a dark-store model
- Rebranded as Zepto in April 2021
- Launched 10-minute delivery, starting in Mumbai
- Rapid expansion across major Indian cities
To date, Zepto has raised over $2.4 billion from investors including Lightspeed, Y Combinator, and Nexus Venture Partners.
What Lies Ahead
If the IPO proceeds as planned, Zepto will join Swiggy and Eternal as publicly listed players in India’s quick commerce space—marking a major milestone for the sector.
While profitability and unit economics remain under scrutiny, the move signals growing confidence in the long-term potential of ultra-fast commerce.
Final Takeaway
Zepto’s confidential IPO filing reflects a broader transition underway in India’s startup ecosystem—from private capital-fuelled hypergrowth to public market accountability.
A successful listing would not only validate Zepto’s aggressive expansion strategy but also test investor appetite for quick commerce at scale. As Dalal Street awaits its next big tech debut, Zepto’s journey could become a defining moment for India’s new-age consumer internet companies.
Sat Dec 27 2025
