Zepto Files Updated IPO Papers With SEBI; Plans To Raise ₹8,010 Crore Via Fresh Issue

Quick commerce company Zepto has filed an updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI), for a $1 billion, or approximately ₹9,500 crore, initial public offering (IPO). It is expected to launch the IPO in July.

The Zepto IPO comprises a fresh issue of equity shares worth ₹8,010 crore. Selling shareholders include Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust.

How The Fresh Issue Proceeds Will Be Used

• Expansion of dark store network across existing and new geographies.

• Lease rentals for existing dark stores.

• Technology and cloud infrastructure investment.

• Marketing and business promotion.

• Inorganic growth opportunities.

• General corporate purposes.

The Business At A Glance

Founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra in 2020, Zepto built its business around a 10-minute grocery delivery model that has scaled rapidly across major Indian cities. Key operating metrics for FY26:

• Revenue from operations: ₹22,624 crore.

• Net receivables value: ₹24,816 crore.

• Average daily orders FY26: 17.5 lakh.

• Stores as of 31 March 2026: 1,139.

• Annual transacting users: Nearly 48 million.

The company has shown improvement in unit economics between Q2FY26 and Q4FY26:

• Average Daily orders: Up from 1.46 million to 2.33 million.

• Orders per day per store: Up from 1,433 to 2,140.

• Total cost per order: Down from ₹181 to ₹128.

• Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation loss per order: Narrowed from ₹110 to ₹59.

Q4FY26 net loss came in at ₹1,539 crore on revenue of ₹7,498 crore, up 75% year-on-year.

The Competitive Landscape

A successful listing would put Zepto on the stock exchanges alongside Eternal, which owns Zomato and Blinkit, listed in 2021, and Swiggy, which operates Instamart and listed in November 2024. All three companies are competing directly for the same quick commerce customer base.

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Background

Originally incorporated as Kiranakart Technologies in December 2020, the company was renamed Zepto in April 2025 and converted into a public limited company in December 2025. It filed preliminary IPO papers through the confidential pre-filing route in December 2025 and received SEBI's observation letter in May 2026.

Axis Capital, Morgan Stanley India, Goldman Sachs India, Motilal Oswal Investment Advisors, HSBC Securities, JM Financial and IIFL Capital Services are managing the offering.

Sources:

The Hindu Businessline

The Economic Times