Zepto files for $1.3B IPO
What's the story
Zepto, a leading player in the quick commerce space, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth $1.3 billion (approximately ₹11,682 crore). The company plans to raise around ₹11,000 crore through fresh capital issuance. The remaining amount will be raised by early investors selling their shares.
Approval details
IPO approval and future plans
Zepto's shareholders approved the company's IPO plan at an extraordinary general meeting on December 23. The four-year-old company intends to list its shares in the July-September quarter of 2026. It has hired Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal as bankers for the issue with Morgan Stanley serving as lead banker.
Financials
Financial performance and market position
In its latest regulatory filing with the Registrar of Companies (RoC), Zepto reported a revenue of ₹9,669 crore for FY25, up 129% from the previous year. However, its net loss nearly tripled to ₹3,367 crore from ₹1,214 crore during this period. The company is currently competing against other players in the quick commerce space such as Blinkit, Swiggy's Instamart, Flipkart Minutes, and Amazon Now.
Market dynamics
Cash reserves and market competition
As of late November, Zepto had around ₹7,000 crore in cash. This gives it an edge over its competitors who are also well-funded. Eternal raised ₹8,500 crore in November last year while Swiggy raised ₹10,000 crore through a qualified institutional placement (QIP) after burning through most of the ₹4,500 crore it raised from its IPO in 2024.
Funding details
Recent funding round and market strategy
In October, Zepto closed a $450 million funding round led by US pension fund Calpers. Of this amount, around $300 million was primary capital. The company has also undertaken several cost-reduction measures in the run-up to its IPO filing such as laying off employees and trimming customer acquisition costs and corporate overheads.