Zepto IPO gets SEBI nod; ₹12,000 cr plan for 2026

SEBI clears Zepto’s IPO proposal

Quick-commerce startup Zepto has reportedly secured approval from the Securities and Exchange Board of India (SEBI) for its initial public offering. The approval is expected to move the company closer to a main-board listing, after it filed draft papers through the confidential route in December 2025. Media reports said SEBI issued its observation letter, which is required before an issuer can proceed with the next steps in the public issue process. The development places Zepto among the new-age consumer internet companies preparing for the public markets in India. It also comes as the quick-commerce segment remains highly competitive, with listed players already on the exchanges.

What the IPO could look like: size and structure

People familiar with the matter have indicated Zepto is planning an IPO in the range of ₹11,000 crore to ₹12,000 crore. In one set of source-based details, the total issue size was pegged at about ₹12,000 crore, with the primary component at around ₹8,500 crore as fresh capital. Other reports described the issue as largely a primary issuance, while also indicating an offer-for-sale (OFS) component by early investors could be part of the final structure. The final size and pricing have been described as undecided and subject to change, which is consistent with a confidential filing process where details can be revised ahead of the launch.

Updated DRHP: the next filing milestone

With SEBI’s approval in place, Zepto is expected to file its Updated Draft Red Herring Prospectus (UDRHP) in the coming weeks. Multiple timelines have been reported: one version suggested six to eight weeks, while another indicated an updated DRHP could be filed in the next two to three weeks, with a listing attempt within roughly eight to ten weeks after that. Taken together, the reports point to an accelerated process now that the regulator has issued its observations. The company had submitted its confidential DRHP in December 2025.

Expected listing window: July to September 2026

Zepto’s listing is projected for the July-September quarter of 2026, according to the reports cited. That timing would place the deal in a period when multiple issuers often aim to tap capital markets ahead of festive-season consumption and ahead of year-end portfolio rebalancing. If the issue proceeds at the reported size, it could become one of the larger IPOs linked to India’s quick-commerce theme. The IPO is also being framed as a step that could strengthen Zepto’s capacity to compete with already listed rivals in food delivery and adjacent commerce categories.

Corporate restructuring ahead of the public markets

As part of its IPO preparation, Zepto transitioned from Zepto Private Limited to Zepto Limited in December 2025, according to the information provided. Such a move aligns with typical readiness steps for a public listing, including governance changes and compliance requirements associated with a public limited structure. The reports also said Zepto’s shareholders approved plans to raise up to ₹11,000 crore through the public offering in December 2025, signalling internal alignment on the fundraising route.

Bankers on the mandate: who is advising Zepto

Several investment banks have been linked to Zepto’s IPO preparation across different reports. Names mentioned include Goldman Sachs, Morgan Stanley, and JM Financial, with selection activity reported as early as September 2024. Other reports added Axis Capital, HSBC, IIFL Securities and Motilal Oswal as part of the broader banker line-up understood to be advising the company. While the final syndicate composition is typically confirmed closer to launch, these reported appointments indicate Zepto has been building the deal framework well in advance of the expected listing window.

The broader SEBI approvals list from May 8

SEBI, on Friday (May 8), approved fund-raising through IPOs for multiple companies alongside Zepto. The list reported includes Hotel Polo Towers Ltd, Crystal Crop Protection Ltd, Surgiwear Ltd, Horizon Industrial Parks Ltd and Dhoot Transmission Ltd. This broader clearance suggests a busy pipeline of public issues moving forward in parallel, even as issuers across sectors calibrate timing based on market conditions.

Competitive context in quick commerce

The planned listing comes amid intense competition in quick commerce, where Zepto is positioned against major platforms and business groups operating in the same category. Reports referenced listed rivals such as Swiggy and Zomato, and also pointed to competition from Eternal-owned Blinkit and Swiggy Instamart, along with newer offerings such as Flipkart Minutes and Amazon Now. While the IPO documents will ultimately spell out category risks and economics, the reported fundraising size indicates Zepto is seeking a substantial capital base as it scales operations and competes for customer retention and delivery density.

Why SEBI’s nod matters for the IPO pipeline

From a process perspective, SEBI’s clearance is a key gating step that allows the issuer to update and progress its prospectus toward an eventual offer. For Zepto, it also formalises a shift from a confidential filing phase into a more visible path toward a launch. The company has been described as valued at about $1 billion in one of the reports, underlining the scale at which investors are tracking the listing. The extent to which the final issue size and mix of fresh issue versus OFS changes will become clearer once the updated DRHP is filed.

What to watch next

The immediate next milestone is Zepto’s updated DRHP filing, expected within the reported six-to-eight-week window. After that, the market will watch for finalised issue structure, the syndicate’s final roles, and the company’s chosen listing schedule within the July-September 2026 quarter. Separately, investors will track any disclosures on the use of proceeds, especially if the fresh issue component remains at the reported scale. Until those documents are public, the most concrete datapoints remain the reported IPO size range, SEBI’s clearance, and the expected timeline for the next filing.