Zepto, an Indian quick-commerce startup, has filed for an initial public offering (IPO) that could value the company at around $1 billion. The IPO filing reveals explosive growth in revenue and a significant increase in losses, raising questions about the company's valuation and profitability.
What Happened
Zepto's IPO plans have been in the works for some time, with the company filing its confidential Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 26, 2025. The updated draft red herring prospectus (UDRHP) was submitted to SEBI shortly after, painting a picture of a company growing at breakneck speed. Revenue from operations more than doubled to Rs 22,624 crore in FY26 from Rs 11,109 crore a year earlier and has expanded nearly 5X from Rs 4,454 crore in FY24.
The scale-up underlines how deeply quick commerce has penetrated urban India. However, the filing also reveals the cost of winning the quick-commerce race. Losses widened to Rs 5,905 crore in FY26, up from Rs 4,699 crore in FY25. While revenue growth remains impressive, the company continues to spend heavily on expanding its dark-store network, strengthening logistics infrastructure and acquiring customers in an intensely competitive market dominated by rivals such as Blinkit and Instamart.
Background and Context
Zepto was founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra. The company has grown into one of India's fastest-growing startups, competing with Zomato-owned Blinkit and Swiggy's Instamart in the country's fiercely contested quick-commerce market. Amazon and Walmart-backed Flipkart have also intensified their efforts in the segment in recent months.
Zepto's business model is centered around delivering groceries in minutes, with a focus on speed and scale over profitability. The company has chosen to spend heavily on customer acquisition, delivery infrastructure, and dark store expansion, which has led to rising costs and losses. Despite this, Zepto remains loss-making, reporting a net loss of ₹59.1 billion (about $617.36 million) in fiscal 2026.
Why it Matters
The IPO filing raises questions about Zepto's valuation and profitability, which could have implications for the quick-commerce market as a whole. The company's aggressive spending on customer acquisition and infrastructure has led to rising costs and losses, which may make it difficult for Zepto to sustain its historical growth rates.
For adult-industry platforms and operators, Zepto's IPO filing highlights the importance of scalability and cost management in the quick-commerce market. As companies like Zepto continue to grow and expand their operations, they will need to balance their spending on customer acquisition and infrastructure with the need to maintain profitability.
What Comes Next
The IPO is expected to raise around ₹11,000-12,000 crore through a combination of a primarily fresh issue of shares and a limited offer-for-sale by early investors. Zepto has received SEBI's in-principle approval for its $1.3 billion IPO, marking a significant milestone in the company's journey towards becoming a publicly traded entity.
The listing will provide a closely watched outcome for some of Zepto's early backers, including Y Combinator and Lightspeed. The startup was valued at $7 billion in its last funding round in October 2025, but some mutual funds and family offices have indicated valuations well below this figure.
Key Facts
- Zepto's revenue more than doubled to Rs 22,624 crore in FY26 from Rs 11,109 crore a year earlier.
- Losses widened to Rs 5,905 crore in FY26, up from Rs 4,699 crore in FY25.
- Zepto has received SEBI's in-principle approval for its $1.3 billion IPO.
- The company is expected to raise around ₹11,000-12,000 crore through a combination of a primarily fresh issue of shares and a limited offer-for-sale by early investors.
- Zepto was valued at $7 billion in its last funding round in October 2025.
