Zepto IPO: Board Approves ₹11,000 Crore Fundraise for 2026

Introduction to Zepto's Public Market Plans

Quick commerce platform Zepto is moving forward with its initial public offering (IPO) after its board approved a plan to raise up to ₹11,000 crore. The company, founded by Stanford dropouts Aadit Palicha and Kaivalya Vohra, is preparing to file its Draft Red Herring Prospectus (DRHP) confidentially. This strategic move positions Zepto to become one of the youngest Indian startups to tap the public markets, aiming for a listing between July and September 2026.

Financial Performance: A Story of Rapid Growth and Widening Losses

Zepto's financial filings reveal a business scaling at an exceptional pace. For the fiscal year ending March 2025 (FY25), the company reported a total turnover of ₹9,669 crore, a significant 129% increase from the ₹4,224 crore recorded in FY24. This explosive revenue growth highlights strong consumer adoption and successful market penetration. However, this aggressive expansion has come at a cost. The company's net loss widened to ₹3,367 crore in FY25, nearly triple the ₹1,215 crore loss reported in the previous fiscal year. These figures reflect heavy investments in expanding its network of dark stores, marketing, and technology to capture a larger market share in the competitive quick-commerce sector.

The IPO Blueprint and Timeline

Zepto's proposed IPO will consist of a fresh issue of shares and an Offer for Sale (OFS) by some of its early investors. The company has opted to file its papers via the confidential route with the Securities and Exchange Board of India (SEBI). This allows Zepto to engage with the regulator and assess investor interest without immediate public disclosure, providing flexibility to adjust the IPO size and timing based on market conditions. The company has appointed a consortium of leading investment banks, including Morgan Stanley, Axis Capital, HSBC, and Goldman Sachs, to manage the public issue.

Funding and Valuation Journey

Founded in 2021, Zepto's rise has been meteoric. The company achieved unicorn status in August 2023 with a valuation of $1.4 billion. Its valuation has since surged, reaching $1 billion following a $150 million funding round in October 2025 led by the California Public Employees’ Retirement System (CalPERS). This consistent ability to attract significant capital from global investors underscores strong confidence in its business model and growth potential.

The Competitive Quick Commerce Arena

The Indian quick-commerce market is intensely competitive, dominated by three major players. Upon listing, Zepto will join rivals Zomato-owned Blinkit and Swiggy's Instamart on the public stock exchanges. Blinkit currently holds the largest market share, but Zepto has been steadily gaining ground, reportedly holding around 29% of the market. The public listing will provide Zepto with a substantial war chest to compete more effectively, fund further expansion, and invest in technology and automation to improve efficiency.

Strategic Moves and Governance Enhancements

In preparation for its IPO, Zepto has undertaken several crucial strategic and governance-focused initiatives. In January 2025, the company completed a reverse flip, shifting its domicile from Singapore back to India, a move aimed at aligning with domestic listing requirements and boosting investor confidence. The company has also expanded its Employee Stock Option Plan (ESOP) pool to attract and retain talent. Furthermore, the appointment of Akhil Gupta, a seasoned executive known for his role in Airtel's IPO, as an independent director signals a strong focus on building a robust governance framework ahead of its public debut.

Navigating Regulatory and Operational Challenges

Despite its rapid growth, Zepto has faced its share of challenges. The company has come under regulatory scrutiny, including a probe by the Competition Commission of India (CCI) over alleged anti-competitive practices like deep discounting. It was also fined for using 'dark patterns' to influence consumer purchasing decisions. Operationally, the quick-commerce model is capital-intensive, with high costs associated with maintaining a widespread network of dark stores and a large delivery fleet. The path to profitability remains a key challenge for all players in the sector.

Analysis: The Growth vs. Profitability Dilemma

Zepto's IPO will be a critical test for the quick-commerce business model in the Indian public market. Investors will have to weigh the company's impressive revenue growth and market share gains against its substantial and widening losses. The key question will be whether Zepto can demonstrate a clear and sustainable path to profitability. Its ability to improve unit economics, optimize its supply chain through automation, and manage costs effectively will be under intense scrutiny as it transitions into a publicly-listed entity.

Conclusion

Zepto is on a clear and calibrated path toward its 2026 IPO. With strong investor backing, a significant market presence, and a fortified governance structure, the company is well-prepared for its public market debut. However, it must navigate the dual challenges of intense competition and regulatory oversight while proving its business model can be profitable in the long run. The outcome of Zepto's listing will not only determine its future but also serve as a key benchmark for the entire Indian quick-commerce industry.