Zepto, the fast‑growing quick‑commerce platform, has taken the first step toward a public listing by filing confidential draft papers for a $1.3 billion IPO.
Why Zepto is Going Public
The Bengaluru‑based startup plans to raise about Rs 11,000 crore of fresh capital, with existing investors also selling shares. This move makes Zepto the youngest VC‑backed venture to seek an IPO, only four years after its launch.
Key IPO Facts
- Target size: $1.3 billion (Rs 11,000‑12,000 crore)
- Expected filing window: July‑September 2026
- Bankers: Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, Motilal Oswal
- Confidential route: Allows the issue size to be adjusted before the final launch.
Recent Financial Performance
For the fiscal year 2025, Zepto reported:
- Revenue of Rs 9,669 crore, a 129% increase YoY.
- Net loss of Rs 3,367 crore, nearly three times the loss a year earlier.
In October, the company secured $450 million, valuing it at $7 billion.
Competitive Pressure
Zepto competes with Swiggy Instamart, Blinkit (Eternal), Flipkart Minutes and Amazon Now. While Zepto held roughly Rs 7,000 crore in cash, rivals Swiggy and Eternal each have around Rs 17,000‑18,000 crore, putting pressure on Zepto to raise more capital.
What This Means for Investors
- Potential for high growth as the quick‑commerce market expands.
- Risks include rising losses and intense competition for market share.
- Investors should watch the final issue size, pricing, and the company’s path to profitability.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.