Zepto Files Confidential DRHP With SEBI For Upcoming IPO

Zepto, a quick commerce platform, has filed with the SEBI to raise ₹11,000 crore by way of an initial public offering (IPO) in 2026 through a confidential filing.

This route allows the company to work with SEBI on its draft red herring prospectus (DRHP) without making it public at the initial stage. Zepto would be among the youngest Indian start-ups to list, joining larger listed competitors such as Zomato and Swiggy.

But the real question is: what is propelling Zepto’s IPO, considering the competitive nature of the quick commerce market?

How Did Zepto's Growth Trajectory Lead To The IPO?

Zepto, a quick commerce platform, was founded by former Stanford University students Aadit Palicha and Kaivalya Vohra. It became a unicorn in August 2023 following its Series E funding round. Zepto's delivery model for groceries within 10 minutes of placing an order has quickly expanded into many of India's biggest metropolitan areas since it was launched.

There are currently over 900 dark stores open to operate this business. Since their launch, they have generated $3 billion of gross sales while burning through a total of approximately ₹1,000-1,100 crores during that period. The pre-IPO document will allow Zepto flexibility to adjust its offering terms in response to market feedback, and will provide the opportunity for the company to go public on the stock market once it has received the necessary regulatory approvals.

In addition, pre-IPO filings are being increasingly used by startups to gain a competitive edge in today's volatile markets before they actually launch and file for an initial public offering.

Funding Milestones And Valuation Jump

Zepto has managed to raise $1.8 billion (or close to ₹16,000 crore) since inception through leading investors, with the latest funding round being $450 million (about ₹3,757.5 crore) from the California Public Employees' Retirement System (CalPERS) in October 2025, which also served to establish its billion-dollar valuation, demonstrating to investors the scalability of hyperlocal quick commerce.

Zepto has developed an infrastructure that allows for less than 10-minute deliveries through strong backing from private equity, differentiating itself from traditional e-grocery companies. Its funding trajectory indicates that it is ready for an IPO and has established a revenue growth trajectory.

Competitive Landscape And Listing Peers

Zepto’s listing will be benchmarked against both Zomato's Blinkit and Swiggy's Instamart. Both have already gone public as quick commerce companies, with Zomato listing in 2021 and Swiggy in November 2024, establishing benchmarks for valuation and growth in this sector, thereby highlighting Zepto as taking a quicker path from unicorn to public company.

Being able to perform a confidential benchmarking study is a good way to compare Zepto to the performance of its post-IPO type competitors before final pricing is done. Besides, the use of dark stores to build out and establish its network positions Zepto as a company that benefits from the increase in urban density associated with high-frequency ordering.

The market response will depend on how well Zepto demonstrates its ability to become profitable, given the cash-intensive operations associated with quick commerce.

Strategic Implications Of Confidential Route

Engagement with SEBI before listing allows it to work with the company on compliance and disclosures in advance of the company's DRHP submission. This model works well for rapidly evolving tech companies like Zepto that have experienced numerous valuation changes due to rapid shifts in the economic environment.

Their filing indicates a maturity level that makes them ready for an initial public offering after several funding rounds. If Zepto's slated IPO occurs in 2026, it lines up nicely with the overall maturation of the e-commerce industry, allowing it access to both employee liquidity and additional growth capital.

Younger founders, such as the ones behind Zepto, exemplify the energy that the tech space continues to create in India.

As Zepto prepares to submit its confidential DRHP, with operations spanning around 900 dark stores, investors are left with many questions: how will their pricing compete with the existing e-commerce giants, and can they establish their position as a sustainable quick-commerce platform?

Sources:

Economic Times
LiveMint