Zepto Files Confidential DRHP with Sebi, Targets 2026 Stock Market Listing
Zepto has pre-filed its draft red herring prospectus with Sebi through a confidential route, targeting a 2026 stock market listing that would make it one of the youngest Indian startups to go public. The quick commerce unicorn, valued at $7.00 billion, has raised $1.80 billion from investors and operates over 900 dark stores with gross sales of $3.00 billion. Founded by Stanford dropouts, Zepto aims to join listed rivals Zomato and Swiggy in the competitive quick commerce market.
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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: | Listing Details |
|---|---|
| Zomato (Blinkit): | Listed in 2021 |
| Swiggy (Instamart): | Debuted November 2024 |
| Zepto: | Targeting 2026 listing |
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:
| Funding Milestone: | Details |
|---|---|
| Current Valuation: | $7.00 billion |
| Total Funding Raised: | $1.80 billion (₹16,000.00 crore) |
| Latest Round (October): | $450.00 million (₹3,757.50 crore) |
| Lead Investor: | California Public Employees' Retirement System (CalPERS) |
| Unicorn Status: | Achieved August 2023 at $1.40 billion valuation |
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:
| Operational Metrics: | Performance |
|---|---|
| Dark Stores: | More than 900 locations |
| Cash Burn: | ₹1,000.00-1,100.00 crore |
| Gross Sales: | $3.00 billion (₹26,000.00 crore) |
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.
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