Zepto IPO: Quick commerce firm Zepto filed an updated draft red herring prospectus (UDRHP-I) with the Securities and Exchange Board of India (Sebi) on June 8. The issue comprises a fresh issue of shares worth Rs 8,010 crore and an offer for sale of up to 113.46 million equity shares by existing investors. Notably, founders Aadit Palicha and Kaivalya Vohra are not selling shares in the IPO.
The investors participating in the OFS include Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust.
The filing marks a major milestone for Zepto as it prepares to enter the public markets and take on listed rivals Eternal-backed Blinkit and Swiggy's Instamart in a rapidly expanding quick commerce industry.
Zepto IPO Objectives
According to the UDRHP-I, a large part of the fresh issue proceeds will go towards expanding Zepto's dark store network across existing markets and new geographies. The funds will also be used to meet lease and licence fee commitments for its existing dark stores.
Zepto plans to invest in technology and cloud infrastructure to support its growing operations and improve the efficiency of its platform. The company has also set aside a portion of the proceeds for marketing and business promotion activities through its subsidiary, Zepto Marketplace.
Apart from funding day-to-day expansion, Zepto intends to use part of the money for acquisitions, strategic investments and other growth opportunities that may arise. The remaining funds will be allocated towards general corporate purposes.
Zepto IPO: Key Details Investors Should Know
The company may also undertake a pre-IPO placement of up to Rs 1,602 crore, which would reduce the size of the fresh issue if completed.
The IPO will be managed by Axis Capital, Morgan Stanley India, Goldman Sachs (India) Securities, Motilal Oswal Investment Advisors, HSBC Securities and Capital Markets (India), JM Financial and IIFL Capital Services, while KFin Technologies is the registrar to the issue. The shares are proposed to be listed on both the exchanges NSE and BSE.
The price band and offer dates have not yet been announced.
Zepto's Financials: Revenue Doubles, Losses Widen
Zepto's latest financials show the company is growing at a blistering pace, but they also show that the company is still prioritising growth over profitability.
For the financial year 2025-26 (FY26), revenue from operations jumped to Rs 22,624 crore, more than twice the Rs 11,110 crore reported a year earlier. The company processed around 640 million orders during the year, while its annual transacting user base grew to nearly 48 million. Net Receivables Value (NRV), a key operating metric that reflects the total value of transactions processed through the platform, stood at Rs 24,816 crore.
The aggressive growth strategy, however, continued to weigh on the bottom line. Zepto's net loss widened to Rs 5,905 crore in FY26 from Rs 4,700 crore in FY25, as the company continued to spend heavily on expanding its dark store network, strengthening its delivery operations, investing in technology and acquiring new customers.
As of March 2026, Zepto had 1,139 dark stores across India and nearly 48 million customers who placed at least one order during the year.
Zepto vs Blinkit vs Instamart: How The Rivals Stack Up Against Each Other
The latest figures mentioned in the UDRHP-I shows that Zepto is widening its lead over Instamart and slowly closing the gap with Blinkit, the market leader.
In Q4 FY26, Zepto reported an NRV of Rs 8,134 crore. Excluding advertising revenue, its comparable transaction value stood at around Rs 7,592 crore. That was well ahead of Swiggy Instamart's estimated Net Order Value (NOV) of Rs 5,674 crore, although Blinkit remained the clear leader with Rs 14,386 crore.
Zepto also processed 210 million orders during the quarter, nearly twice Instamart's 112.6 million orders. Blinkit, however, continued to lead with 273.90 million orders.
As of March 2026, Zepto operated 1,139 dark stores, almost the same as Instamart's 1,143 stores. Blinkit's network was significantly larger at 2,243 stores.
Despite having a similar number of dark stores as Instamart, Zepto handled almost twice as many orders. According to the company, each dark store processed an average of 2,140 orders per day during the March quarter. Based on estimates using publicly available data, Blinkit's stores processed about 1,357 orders per day, while Instamart's handled around 1,095.
While Zepto has narrowed the scale gap with Blinkit and widened its lead over Instamart, profitability is still a key concern for the IPO-bound quick commerce firm.
In Q4 FY26, Zepto reported an adjusted Ebitda loss of Rs 1,248 crore. Although that was an improvement from a year ago, it remained substantially higher than Instamart's adjusted Ebitda loss of Rs 858 crore.
Blinkit, meanwhile, reported a positive adjusted Ebitda of Rs 37 crore, making it the only major quick commerce player currently operating at that level of profitability.
