Quick commerce giant Zepto has filed draft papers with India’s market regulator to raise Rs 11,000 crore through an initial public offering. The company used a confidential route for this step and plans to list on stock exchanges in 2026, making it one of the youngest startups to go public in the country.
This move comes as Zepto rides a wave of growth in India’s fast delivery sector. Founded just four years ago, the firm aims to boost its cash reserves and expand operations amid fierce competition.
Zepto’s Rise in Quick Commerce
Zepto started in 2021 as a startup focused on delivering groceries and essentials in minutes. Two young entrepreneurs, Aadit Palicha and Kaivalya Vohra, launched it after dropping out of college in the United States.
The company quickly gained traction during the pandemic when people needed fast home deliveries. Today, Zepto operates in major cities like Mumbai, Delhi, and Bangalore, serving millions of customers.
Its business model relies on dark stores, which are small warehouses stocked with popular items. This setup allows deliveries in under 10 minutes, setting it apart from traditional e-commerce players.
Zepto has grown its revenue to around Rs 11,000 crore in the fiscal year 2025. Experts say this rapid expansion shows the potential of quick commerce in urban India.
Details of the IPO Filing
Zepto submitted its draft red herring prospectus to the Securities and Exchange Board of India on December 27, 2025. The filing seeks to raise Rs 11,000 crore mainly through fresh shares, with a small portion as an offer for sale by early investors.
This confidential route lets companies file papers privately before going public. It helps them test the waters without full disclosure right away.
The listing is targeted for the July to September quarter of 2026. Sources indicate the IPO could value Zepto at over $7 billion, based on its latest funding round.
Here are key highlights from the filing:
- Total raise: Rs 11,000 crore in fresh equity.
- Offer for sale: Small amount for early backers to exit.
- Timeline: Pre-filing done, full process to unfold in 2026.
- Purpose: Fund expansion, technology, and working capital.
Banks Leading the Charge
Several top investment banks are managing the IPO. Morgan Stanley leads the pack, joined by Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal.
These banks will help Zepto navigate the listing process. Their involvement signals strong interest from global investors in India’s startup scene.
Zepto’s cash position stands at about Rs 7,000 crore after a $450 million funding round in October 2025. This gives it a solid base to compete with rivals.
Valuation and Recent Funding
Zepto has raised over $1 billion in the past year alone. Its valuation jumped to $7 billion after the latest round, up from $3.6 billion in mid-2024.
Investors like General Catalyst and Lightspeed Venture Partners have backed the company. This funding spree shows confidence in Zepto’s growth path.
| Funding Round | Amount Raised (USD) | Valuation (USD) | Date |
|---|---|---|---|
| Series A | 60 million | Not disclosed | October 2021 |
| Series B | 665 million | 3.6 billion | June 2024 |
| Series C | 340 million | 5 billion | August 2024 |
| Series D | 450 million | 7 billion | October 2025 |
This table shows how Zepto’s funding has accelerated. Each round brought in big names and higher valuations.
Competition in the Quick Commerce Space
Zepto faces tough rivals like Blinkit, owned by Zomato, and Swiggy’s Instamart. These players also deliver goods quickly and have listed or plan to list soon.
Swiggy went public in 2024 and holds about Rs 17,000 crore in cash. Blinkit benefits from Zomato’s food delivery network.
Despite competition, Zepto claims a strong market share in key cities. It focuses on fresh produce and daily essentials to keep customers loyal.
Analysts predict the quick commerce market in India could reach $50 billion by 2030. Zepto’s IPO might spark more investments in this sector.
Challenges include high operational costs and regulatory scrutiny. Quick commerce firms often lose money on fast deliveries, but Zepto aims to turn profitable soon.
What This Means for Investors and the Industry
The IPO could open doors for retail investors to own a piece of Zepto. It also highlights India’s booming startup ecosystem, where young firms go public faster than ever.
For the industry, this listing might encourage other unicorns to follow suit. It shows that quick commerce is not just a trend but a lasting business model.
Experts believe Zepto’s move will attract foreign capital to Indian markets. With economic growth steady, such IPOs could boost stock exchanges.
As Zepto prepares for its debut, watch for updates on its financial health and expansion plans.
What do you think about Zepto’s IPO? Share your thoughts in the comments and spread the word to fellow investors.
