Zepto IPO

Zepto IPO News

• June 9, 2026 - Zepto filed its Updated DRHP with SEBI, planning to raise ₹8,010 crore via a fresh issue alongside an OFS component, making it the first dedicated quick commerce company set for a domestic stock exchange debut. The filing also disclosed an ongoing FEMA-related compliance matter involving its founders, with all requested documents already submitted to the ED.

• June 3, 2026- Zepto is expected to submit its updated Draft Red Herring Prospectus (UDRHP) to the market regulator shortly. The company had already received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) in early May.

• May 11, 2026- In preparation for its IPO, Zepto is said to have appointed several investment banks including Goldman Sachs, Morgan Stanley, and JM Financial as its bankers.

• May 8, 2026 - Zepto received SEBI's formal approval (observation letter) for its IPO. The IPO is expected to raise around ₹11,000-12,000 crore, featuring a fresh issue supplemented by an Offer for Sale (OFS). Updated DRHP expected within 6-8 weeks.

• January 2, 2026 - Zepto formally submitted its IPO papers to SEBI via the confidential pre-filing mechanism.

• December 26, 2025 - Zepto filed its confidential Draft Red Herring Prospectus (DRHP) with SEBI. The confidential pre-filing route allows the company to seek regulatory feedback without public disclosure of draft documents.

• October 16, 2025 - Zepto announced the closure of a $450 million Series H funding round led by CalPERS at a valuation of $7 billion. The round included existing investors General Catalyst, Avra, Lightspeed, StepStone, and Nexus Venture Partners.

• January 9, 2025 - NCLT issued its order approving Zepto's reverse merger - the amalgamation of Singapore-based Kiranakart Pte. Ltd with Indian entity Kiranakart Technologies Private Limited, completing Zepto's domicile shift from Singapore to India.

• November 22, 2024 - Zepto raised $350 million in a round led by Motilal Oswal Private Wealth, 100% domestically funded, with investments from Indian family offices and individuals including Sachin Tendulkar and Abhishek Bachchan. Valuation held at $5 billion.

• August 14, 2024 - Zepto raised $340 million in a Series G round led by General Catalyst, pushing valuation to $5 billion.

• June 21, 2024 - Zepto raised $665 million in a Series F round, valuing the firm at $3.6 billion.

About Zepto IPO

Zepto has filed the Updated Draft Red Herring Prospectus (UDRHP) in June, which is available on the SEBI website. The issue comprises of a fresh issue of ₹8,010 crore and an offer for sale (OFS) of 11,34,66,566 shares by the early investor shareholders in the company. The overall size of the IPO will be known after the price band announcement.

Zepto quick commerce platform undertakes rapid delivery of groceries, fresh produce, FMCG products, electronics, personal care items and other daily essentials. Zepto operates a network of 1,139 dark stores for order fulfilment, predominantly in the 66 major cities of India. Zepto has managed to integrate a technology quick commerce platform with warehouse management system and a smart last-mile delivery platform. It generates revenues through product commissions, ad sales, delivery / logistics fees etc. It serves 4.80 crore annual transacting users (ATUs) and processes around 2.33 million orders per day on an average. In FY26, Zepto achieved net receivables value of (NRV) of ₹24,816 crore.

Objectives of Zepto IPO

• Expansion of dark stores and of last-mile logistics
  
• Expanding and diversifying the product categories
  
• Expenses towards lease rentals of dark stores
  
• Investing in technology stack, including cloud infrastructure and AI/ML capabilities
  
• Investing in subsidiary (Zepto Marketplace) for marketing and brand awareness
  
• Funding inorganic growth via mergers and acquisitions
  
• For general corporate expenses
  

Industry Outlook

Quick commerce achieved a GMV of approximately ₹963 billion (US$11.3 billion) in CY2025 and is expected to grow 5–7x by CY2030. Over the next five years, India's retail market is projected to expand by ₹44–58 trillion (US$520–677 billion), with quick commerce contributing an additional ₹4.1–6.1 trillion (US$49–72 billion) to that growth. As a result, the quick commerce market is forecast to reach ₹5.1–7.1 trillion (US$60–83 billion) by CY2030. This implies that quick commerce could account for roughly 9–11% of the incremental growth in the retail sector. The strong growth outlook also suggests that quick commerce is not merely shifting existing demand but is enlarging the overall retail market by addressing previously unmet consumer needs and enabling new consumption occasions, highlighting significant untapped growth potential.

Company Information

Zepto is a quick-commerce company delivering groceries and daily essentials to customers in just a few minutes. It was started by two young entrepreneurs, Aadit Palicha and Kaivalya Vohra. Zepto uses a network of small warehouses called ‘dark stores’ located in different areas of a city. It uses these dark stores to deliver items quickly. Through its mobile app, customers can order fruits, vegetables, snacks, milk, and other essentials anytime.

Zepto has seen a rapid growth in revenues on the back of order volumes and a lateral expansion across cities and towns. However, a combination of higher delivery costs, discounts, and higher infrastructure costs have resulted in sustained losses in the business. For the company, the scale has to now morph into better unit economics.

Strengths of Zepto

• Its major differentiator has been the persistent delivery crunching within 10-20 minutes. This has led to the popularity of the platform.
• Its major strength has been the density of dark stores in key urban clusters. This enables them, to manage real fast delivery.
• Zepto has positioned itself as the only pure-play quick commerce brand in India, unlike Blinkit and Instamart, which are also into other related areas.
• Strong franchise in fresh products, largely due to direct linkage with sources of output.

Risks of Zepto

• Advanced machine-learning-driven dark store placement and optimized store layouts enhance coverage, improve delivery speeds, and reduce operating costs.
• A dense and expanding network of delivery partners enables rapid last-mile fulfillment, supports demand surges, and improves network economics.
• Continued investments in automation technologies such as automated sorting, picking, weighing, and packaging systems improve productivity, accuracy, and cost efficiency.
• Technology-led supply chain management and data-driven network optimization create a scalable operating model that strengthens profitability and service reliability.

Anchor Investor Bidding Date: TBA

Registrar Details
Kfin Technologies Limited
Email: einward.ris@kfintech.com
Phone: 04067162222, 04079611000

Book Running Lead Managers

• Axis Capital Limited, Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, Motilal Oswal Investment Advisors Limited, HSBC Securities & Capital Markets (India) Private Limited, JM Financial Limited, and IIFL Capital Services Limited.

Business Model

The Zepto business model is centred around ultra-fast grocery delivery through a network of strategically located dark stores. It generates revenue through product margins, delivery fees, subscription-based loyalty programmes and advertising. Advanced technology supports these operations. The company maintains cost-effectiveness and fast delivery services by optimising its supply chain and delivery efficiency.

Company Growth Trajectory

Zepto’s growth trajectory is closely tied to its ability to expand and retain its ecosystem of Brand Partners, Merchant Partners, and Farmer Partners, which enables the platform to offer a wider product assortment and drive higher revenues, including from advertising services. The company’s continued expansion also depends on strengthening its delivery network by attracting and retaining delivery partners, a critical component of its quick-commerce model. Sustained growth in partner participation across sourcing, merchandising, and last-mile logistics is expected to support customer acquisition, order volumes, and revenue growth, while any challenges in retaining these stakeholders could adversely impact the company’s business performance and financial results.

Market Position

Zepto has strengthened its position in India’s quick-commerce market through a user-centric operating model built around four core principles—Speed of Delivery, Quality, Assortment, and Price transparency (S.Q.A.P.). This focus on operational efficiency and customer experience has driven strong user adoption, with the number of Annual Transacting Users (ATUs) increasing from 10.57 million as of March 31, 2024, to 38.38 million in FY25 and 47.97 million in FY26. Reflecting this rapid scale-up, the company reported a Net Receivables Value (NRV) of ₹248.16 billion and an average of 1.75 million orders per day in FY26. Since launching its first dark store in 2021, Zepto has achieved significant growth, with NRV expanding at a compound annual growth rate (CAGR) of 117.79% between FY24 and FY26.

How to Apply for the Zepto IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.