Summary of this article
Sebi has approved Zepto’s IPO; DRHP filing expected in 6–8 weeks
Issue size likely Rs 8,000–9,000 crore, below earlier estimates
Strong revenue growth but widening losses ahead of listing
Quick commerce major Zepto has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO), according to an Economic Times (ET) report.
The Aadit Palicha-led company is now expected to file an updated draft red herring prospectus (DRHP) within the next six to eight weeks, setting the stage for one of the most closely watched listings in India’s startup ecosystem.
The company recently transitioned from Zepto Private Limited to Zepto Limited and also shifted its domicile back to India from Singapore in January, aligning itself for the listing process.
For its public issue, Zepto has roped in a strong line-up of investment banks including Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal.
If the IPO proceeds as planned, Zepto could become one of the youngest venture-backed Indian startups to go public, just four years after its launch. The company operates in a highly competitive quick commerce space alongside listed players like Swiggy and Eternal (Zomato parent), and new entrants like Amazon Now and Flipkart Minutes.
Zepto IPO Size May Be Lower Than Earlier Plans
As per people cited in the ET report, Zepto’s IPO is likely to be sized at around Rs 8,000–9,000 crore. This is lower than its earlier confidential filing in December, where the company had planned a Rs 11,000–12,000 crore issue.
However, sources indicate that the final structure, size, and pricing are still under discussion and may change before the filing.
Strong Cash Position Amid Heavy Losses
Zepto is reported to have a cash balance of around Rs 6,000–7,000 crore on its books. Despite strong revenue growth, the company continues to report widening losses as it invests heavily in expansion and customer acquisition.
For FY25, Zepto’s total income rose 129 per cent to Rs 9,668.8 crore from Rs 4,223.9 crore in FY24. However, its net loss also increased significantly by 177 per cent to Rs 3,367.3 crore from Rs 1,214.7 crore a year earlier.
Zepto's Valuation
Zepto last raised $450 million in October 2025 at a valuation of about $7 billion, led by California Public Employees’ Retirement System (CalPERS). Overall, it has raised over $2.45 billion from global investors including DST Global, General Catalyst, Lightspeed Venture Partners, and others.
Five More IPO Get Sebi Nod
Apart from Zepto, Sebi has also cleared IPO proposals of several companies including Dhoot Transmission, Horizon Industrial Parks, Surgiwear, Crystal Crop Protection, and Hotel Polo Tower.
The approvals come at a time when the primary market action has dried up due to the uncertainty induced by the US-Iran war. In April, only one mainboard company launched its IPO and raised just Rs 150 crore. So far in May, one mainboard IPO has raised Rs 926 crore, while one real estate investment trust (Reit) issue mobilised Rs 3,405 crore.
Frequently Asked Questions
Q1: What does Sebi approval mean for Zepto’s IPO?
Sebi’s approval allows Zepto to move ahead with its IPO process and file an updated DRHP within 6–8 weeks, bringing it closer to a stock market listing.
Q2: How much money is Zepto expected to raise through its IPO?
Zepto’s IPO size is expected to be around Rs 8,000–9,000 crore, though the final issue size, structure, and pricing are still under discussion.
Q3: Is Zepto profitable ahead of its IPO?
No. While Zepto has seen strong revenue growth, it continues to report widening losses due to aggressive spending on expansion and customer acquisition.
