What is Zepto's current growth trajectory?

Zepto's updated draft red herring prospectus reveals a business that is scaling rapidly, with FY26 revenue from operations crossing Rs 22,600 crore, Net Receivables Value (NRV) nearing Rs 25,000 crore, and advertising revenue topping Rs 1,600 crore. This indicates a significant increase in the company's revenue and user base, with annual orders rising 93% to 640 million in FY26.

Why is Zepto's contribution margin missing from the IPO filing?

The absence of contribution margin, a metric widely used across quick commerce to measure order-level profitability, is notable. This metric is crucial in understanding the economics of individual orders and making direct comparisons with other companies in the sector. However, Zepto reports adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA per order, and adjusted EBITDA as a percentage of NRV, which provide some insight into the company's profitability.

How does Zepto's user growth compare to its order growth?

While Zepto's order growth is impressive, with annual orders rising 93% to 640 million in FY26, the company's user growth trails behind. Annual Transacting Users (ATU) grew 25% to 47.97 million from 38.38 million a year earlier. This suggests that order growth is outpacing user growth, although the filing does not provide enough information to determine the drivers of this trend.

What is Zepto's cash runway, and how does it compare to its peers?

Zepto's cash runway is estimated to be around three quarters, based on its March-quarter free cash flow and adjusted cash balance. This is relatively short compared to its peers, with Swiggy holding net cash of about $1.32 billion and Eternal's net cash standing at roughly $1.4 billion. Zepto's limited cash runway may be one of the key reasons the company is pursuing an IPO to raise fresh capital.

How does Zepto measure its scale, and what are the implications for comparisons with peers?

Zepto uses Net Receivables Value (NRV) as its primary transaction-value metric, which includes not only the value of customer orders but also advertising revenue, subscription income, and certain user fees. This distinction is important, as it may make Zepto's reported scale appear larger when compared to peer metrics that exclude such revenue streams. Investors should account for these differences when making like-for-like comparisons.

What is Zepto's current growth trajectory?

Zepto's updated draft red herring prospectus reveals a business that is scaling rapidly, with FY26 revenue from operations crossing Rs 22,600 crore, Net Receivables Value (NRV) nearing Rs 25,000 crore, and advertising revenue topping Rs 1,600 crore. This indicates a significant increase in the company's revenue and user base, with annual orders rising 93% to 640 million in FY26.

Why is Zepto's contribution margin missing from the IPO filing?

The absence of contribution margin, a metric widely used across quick commerce to measure order-level profitability, is notable. This metric is crucial in understanding the economics of individual orders and making direct comparisons with other companies in the sector. However, Zepto reports adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA per order, and adjusted EBITDA as a percentage of NRV, which provide some insight into the company's profitability.

How does Zepto's user growth compare to its order growth?

While Zepto's order growth is impressive, with annual orders rising 93% to 640 million in FY26, the company's user growth trails behind. Annual Transacting Users (ATU) grew 25% to 47.97 million from 38.38 million a year earlier. This suggests that order growth is outpacing user growth, although the filing does not provide enough information to determine the drivers of this trend.

What is Zepto's cash runway, and how does it compare to its peers?

Zepto's cash runway is estimated to be around three quarters, based on its March-quarter free cash flow and adjusted cash balance. This is relatively short compared to its peers, with Swiggy holding net cash of about $1.32 billion and Eternal's net cash standing at roughly $1.4 billion. Zepto's limited cash runway may be one of the key reasons the company is pursuing an IPO to raise fresh capital.

How does Zepto measure its scale, and what are the implications for comparisons with peers?

Zepto uses Net Receivables Value (NRV) as its primary transaction-value metric, which includes not only the value of customer orders but also advertising revenue, subscription income, and certain user fees. This distinction is important, as it may make Zepto's reported scale appear larger when compared to peer metrics that exclude such revenue streams. Investors should account for these differences when making like-for-like comparisons.

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Zepto's IPO Filing Reveals Rapid Growth

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