Quick commerce platform Zepto has confidentially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering worth $1.30 billion (₹11,000-12,000 crore). The Aadit Palicha and Kaivalya Vohra-led company received shareholder approval at an extraordinary general meeting on December 23, clearing the path for its public market debut and making it one of the youngest startups to tap the public markets.

IPO Structure and Timeline

The IPO is expected to raise approximately $1.30 billion, with ₹11,000.00 crore coming from fresh equity capital and the remaining portion comprising an offer for sale by early investors. Zepto is targeting its stock market listing between July and September 2026, which would make it the youngest company to hit the Indian public markets at just four years old. Earlier startups such as Ola Electric and Honasa Consumer went public six to seven years after incorporation.

Investment Banking Consortium

Zepto has assembled a strong consortium of investment banks to manage its public offering. The company has appointed Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal as book running lead managers for the IPO issue. The confidential filing route, also taken by companies like Swiggy, Meesho and Groww, provides Zepto with flexibility to revise its IPO size before the final launch.

Financial Performance Shows Strong Revenue Growth

Zepto's latest financial results demonstrate significant business expansion. According to regulatory filings, the company's revenue rose sharply to ₹9,669.00 crore in FY25, representing a 129.00% year-on-year increase. However, the company's net loss nearly tripled to ₹3,367.00 crore from ₹1,214.00 crore in the previous year, reflecting the high cash burn typical of the quick commerce sector.

Strategic Corporate Developments and Market Competition

The company has undertaken several strategic moves to prepare for its public listing. Zepto moved its corporate domicile back to India from Singapore in January, aligning with regulatory requirements for Indian market listing. The fundraising will strengthen the company's balance sheet as it competes against established players including Blinkit, Swiggy Instamart, Flipkart Minutes and Amazon Now.

As of late November, Zepto had around ₹7,000.00 crore in cash, while competitors like Blinkit's parent Zomato and Swiggy each have ₹17,000-18,000 crore on their books. Following its October fundraising, Zepto stepped up competition by offering higher discounts and removing various platform fees to boost order numbers.

Market Position and Future Outlook

Zepto closed a $450.00 million funding round in October through a mix of primary and secondary transactions, led by US-based pension fund CalPERS, which valued the company at $7.00 billion. According to a September note by BofA Securities, Blinkit holds more than 50.00% of the quick commerce market share, with rivals Zepto, Instamart, BigBasket, Flipkart Minutes and Amazon Now accounting for the rest.

After a strong listings season in 2025, several other new-age companies, including PhonePe, Flipkart, Shadowfax, Shiprocket and Curefoods, have lined up to go public next year. Based in Bengaluru, Zepto operates in India's competitive quick commerce landscape, competing with established players like Swiggy and Zomato, both of which are already listed on Indian stock exchanges.

Quick commerce unicorn Zepto has taken a significant step toward going public by pre-filing its draft red herring prospectus (DRHP) with market regulator Sebi on Friday through a confidential route. The company is targeting a stock market listing sometime in 2026, positioning itself to become one of the youngest startups to debut on Indian stock exchanges.

Strategic IPO Positioning

The confidential pre-filing allows Zepto to engage with the Securities and Exchange Board of India (Sebi) for initial feedback on its draft document without public disclosure. This route has been increasingly favoured by companies seeking more flexibility in their IPO preparations and responding to market conditions before a public filing.

If successful, Zepto will join its publicly traded rivals in the quick commerce space:

Company Valuation and Funding

Zepto has demonstrated strong investor confidence, raising substantial funding across multiple rounds. The company's funding journey reflects its rapid growth in the competitive quick commerce market:

The company achieved unicorn status in August 2023 after raising $200.00 million in its Series E funding round, which valued the startup at $1.40 billion.

Business Operations and Performance

Founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto has rapidly scaled its 10-minute grocery delivery model across major Indian cities. The company's operational metrics as of September demonstrate significant scale:

Market Context

The quick commerce sector in India has seen intense competition and rapid growth, with established players like Zomato's Blinkit and Swiggy's Instamart already capturing significant market share. Zepto's potential listing would add another publicly traded entity to this dynamic sector, providing investors with additional exposure to India's growing quick commerce market.

The company's confidential filing approach reflects a strategic move to maintain flexibility while preparing for public markets, allowing management to address regulatory feedback before making their IPO plans public.