IPO · Commerce & Consumer Brands

Zepto gets SEBI nod for up to $1.2 billion IPO

What they do

Zepto is a Bengaluru-based quick commerce company that had approximately 1,100 dark stores as of late 2025

SEBI approved its IPO filing with an issue size of up to ₹12,000 crore ($1.2 billion)

The company targets full-year post-tax profitability by FY29 despite recent widening losses

SEBI issued an observation letter approving Zepto's initial public offering (IPO) application.
Zepto plans to file an updated draft red herring prospectus (UDRHP) within six to eight weeks.
The IPO size is reported as ₹11,000 Cr to ₹12,000 Cr ($1.2 billion).
Shareholder approval for up to ₹11,000 Cr in fresh capital was secured in December 2025.

Daily order volume has grown to over 2.5 million orders/day from 1.5-1.7m previously.
The company shifted domicile from Singapore back to India converting to Zepto Limited.
Sector scrutiny exists over rider safety and fixed-time delivery claims like ten-minute delivery.

Zepto operates a network of approximately 1,100 dark stores across India.
It functions as a quick commerce platform delivering groceries and essentials rapidly.
The company plans to grow order volumes without materially expanding its dark store network.
Zepto shut down its loyalty programme Zepto Daily in February 2026.
FY25 total income reached ₹9,668.8 crore showing 129% year-on-year growth.
FY25 net loss widened to ₹3,367.3 crore from ₹1,214.7 crore the previous year.
Competitors include Blinkit, Swiggy Instamart, Amazon Now, Flipkart Minutes, and BigBasket.
The business model relies on high-frequency small-ticket transactions via dark stores.
Total raised capital exceeds $2.45 billion across multiple funding rounds.

CalPERS (lead) — Led a $450M round in October 2025 at a $7B valuation.
General Catalyst (participated) — Early stage investor in Zepto.
DST Global (participated) — Growth stage investor in Zepto.
Lightspeed Venture Partners (participated) — Venture capital firm investing in Zepto.

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.