Zepto seems to be quietly setting the stage for one of India’s largest startup IPOs. The quick-commerce company has confidentially filed its draft papers with market regulator SEBI, signaling plans to raise about $1.3 billion (~ ₹11,600 crore) through a public listing, reports The Economic Times. Notably, the confidential filing allows the company to engage with regulators behind closed doors while keeping key financial details and the issue size flexible ahead of a potential listing next year.
Zepto’s IPO — if it does go through — would mark a landmark moment for the quick commerce space, and would be a first globally. The Q-com model, which relies heavily on hyperlocal ‘dark’ stores and last mile delivery fleets, hasn’t really worked out in rest of the world, with India being the only major market showing a reversal of trend. This also comes amid reports of a nationwide strike by gig workers of Zepto, BlinkIt, Swiggy, Zomato and others on New Year’s Eve, over poor working conditions.
The move follows shareholder approval for the IPO at an extraordinary general meeting held last week. According to the report, the proposed offering is expected to include a fresh issue of shares worth around ₹11,000 crore, along with an offer for sale (OFS) by some existing investors. While the final structure could still evolve, the primary capital raised is likely to be directed toward strengthening Zepto’s balance sheet, funding expansion, and supporting long-term growth initiatives.
Meanwhile, Zepto has appointed a heavyweight syndicate of investment banks to manage the issue, which clearly shows the scale of its public market ambitions. The lineup includes Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal, with Morgan Stanley said to be leading the transaction. Subject to regulatory approvals and market conditions, the company is targeting a listing window in the second half of 2026, likely between July and September.
Founded by Aadit Palicha and Kaivalya Vohra, Zepto promises delivery of groceries and daily essentials within 10-15 minutes and operates a network of strategically located dark stores. The company reported strong growth in FY2025, with revenue hitting ₹11,109 crore (~ $1.33 billion), almost doubling from ₹4,454 crore in FY2024. Since its inception in 2021, the firm has raised more than $1.5 billion from a mix of global and Indian investors. Last year, the company secured $665 million at a $3.6 billion valuation, followed by another $340 million at a $5 billion valuation, and most recently $450 million in a pre-IPO round led by the California Public Employees’ Retirement System (CalPERS) that pushed its valuation to around $7 billion.
Financially, Zepto has reported sharp growth in revenue driven by increasing order volumes and city-level expansion. However, like most players in quick commerce, it continues to incur significant losses as it prioritizes scale over profitability. The firm has also faced several other challenges and increased public scrutiny in recent months. For example, one of its Mumbai dark stores was temporarily suspended after authorities found hygiene and food safety violations, including expired products and improper cold storage. Zepto has also drawn criticism over aspects of its customer service, pricing practices, and quality control.