Tag: Zepto

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Zepto IPO to test quick‑commerce profitability

Bengaluru-based Zepto, a leading quick‑commerce platform promising 10‑minute grocery deliveries, has filed for a confidential IPO with SEBI, targeting a public listing in 2026. The company plans to raise around Rs 11,000 crore to strengthen operations and expand its network of over 900 “dark stores” across major cities.

Founded in 2021, Zepto has seen rapid revenue growth, but profitability remains a challenge. Analysts say the IPO will put the spotlight on cost structures, unit economics, and sustainability, as investors closely examine how Zepto competes with rivals such as Swiggy’s Instamart and Zomato’s Blinkit.

With more than $2 billion raised in private funding so far, including a $450 million round in October 2025 at a $7 billion valuation, Zepto is among India’s fastest-growing internet startups. Its entry into public markets is expected to influence investor perception of the quick‑commerce sector, highlighting both the potential and risks of ultra‑fast delivery models.

The IPO is likely to set benchmarks for pricing, profitability, and expansion strategies in the growing rapid‑delivery industry, which continues to attract significant consumer and investor attention.

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Zepto plans Rs 11,000 cr IPO, files confidential papers

Zepto, the quick-commerce startup is gearing up for its initial public offering (IPO), planning to raise up to Rs 11,000 crore through the public issue. The company has filed its draft IPO papers confidentially with the Securities and Exchange Board of India (Sebi), a process that allows it to receive regulator feedback before making the IPO public.

This marks a key step in Zepto’s plans to list on the stock exchange in 2026, potentially making it one of India’s youngest startups to go public.

Founded by Aadit Palicha and Kaivalya Vohra, Zepto has carved a niche in the rapid grocery delivery sector, promising essentials delivered in minutes. The company operates through a network of dark stores in major Indian cities and has expanded rapidly, attracting strong interest from investors. Over the years, Zepto has grown its revenues significantly, although it continues to report losses as it invests heavily in market expansion and customer acquisition.

The planned IPO will include fresh shares issued by the company, along with stake sales by existing investors. This combination allows Zepto to raise fresh capital for growth while providing liquidity for early backers. To streamline operations and improve profitability ahead of listing, Zepto has implemented cost-reduction measures, including optimizing workforce and tightening customer-acquisition spending.

A consortium of investment banks, including Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal, has been appointed to manage the IPO. Subject to market conditions and regulatory approvals, Zepto aims to debut on the stock market in the July–September 2026 quarter.

The IPO comes amid a surge in Indian startup listings, particularly in technology, e-commerce, and delivery sectors. Zepto’s public debut is expected to join the ranks of firms like Zomato and Swiggy, showcasing investor confidence in the quick-commerce sector, despite intense competition and high operational costs. Analysts say Zepto’s rapid growth, strong market presence, and focus on operational efficiency make it an attractive opportunity for investors, signaling a new phase for India’s fast-growing on-demand delivery market.

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Zepto becomes public company, plans IPO by June 2026

Bengaluru-based quick-commerce startup Zepto has officially converted from a private to a public limited company, taking a major step toward launching its initial public offering (IPO). Shareholders approved the move during an extraordinary meeting on November 21. Following the approval, the company’s legal name has changed from “Zepto Private Limited” to “Zepto Limited.”

The company also updated its legal documents, including its Memorandum and Articles of Association, to comply with public company regulations. These changes allow Zepto to file its draft IPO papers with market regulators, likely in the near future.

Founded in July 2021, Zepto has grown rapidly and is now valued at around USD 7 billion. It has raised about USD 1.8 billion (approximately ₹16,000 crore) from investors so far. Despite being a relatively young startup, Zepto operates over 900 “dark stores” across India and has managed gross sales worth about USD 3 billion (around ₹26,000 crore).

However, the company has faced high operating costs and has spent between ₹1,000–1,100 crore in cash. Company insiders say that while cash burn has been significant, it is now decreasing as operations become more efficient. Order volumes are reportedly increasing by 20–25% each quarter, and the company aims for over 100% growth year-on-year.

With the conversion to a public company, Zepto is now set to take the next big step in its growth journey. The startup plans to submit its draft IPO documents to regulators this month, with an aim to go public and list its shares on the stock market by June 2026.

The move signals Zepto’s intention to tap public markets to raise funds for expansion, strengthen operations, and solidify its position in the rapidly growing quick-commerce sector. Analysts see this as a significant development, as Zepto is among the first unicorns in India’s fast-paced quick-delivery segment to take steps toward becoming a listed company.

By going public, Zepto hopes to attract more investors, scale operations, and compete effectively with other players in the sector, while giving early investors and founders a path to unlock the value of their stakes.

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