Summary of this article
Zepto may soon file a confidential DRHP with Sebi
Here's what it could mean for the sector
The quick-commerce app Zepto may soon file a confidential Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), and take the first step towards launching the much-awaited initial public offering (IPO). According to a report by Moneycontrol, the company could file the DRHP as early as December 26 with Sebi.
If the company goes ahead with the DRHP filing, it would signal that the company is ready with its financial disclosures and regulatory checks required to be filed with Sebi to go ahead with an IPO. The confidential DRHP is a route that allows a company to submit the draft IPO documents to the regulator without immediately making them public.
What The IPO Of Zepto Could Signal
Zepto, a quick-commerce app that was founded in 2020, is a Bengaluru-based startup. The company became a unicorn in 2023, valued at over $1.4 billion, and had raised $200 million through a Series-E funding round. If the company decides to go for a public listing, it would be among the youngest Indian unicorn companies to tap into the public market, roughly six years since inception. Honasa Consumer, parent of Mamaearth, went for an IPO seven years after the company was founded.
If the company moves towards an IPO, it will come at a time when investors have become more cautious of e-commerce businesses, and the scrutiny has intensified. Major brokerages have turned increasingly cautious on both Swiggy and Eternal, even as competition in the sector has grown.
In 2025, a record 365 companies filed IPO, and the markets watchdog Sebi has warned that high components of offer-for-sale in IPOs, rather than fresh funding, along with the trend of early investors selling off, is a continuing one.
Competition in quick commerce sector
If Zepto goes public, it will join a crowded public-market space to rival Eternal, the company operating Blinkit. It also has to compete with Swiggy, which runs its quick-commerce platform Instamart. Eternal’s market capitalisation stands at around $30 billion, and Swiggy’s valuation was around $12 billion. With Zepto looking towards a potential listing, three leading quick commerce platforms would be available to trade on the public markets. Along with this, BigBasket, Flipkart Minutes, and Amazon Now have also increased investments in their quick commerce segments.
