Zepto Confidentially Files Draft Papers For $1.3 Bn IPO Push

India’s quick commerce race is steadily shifting from private capital to public markets. Zepto, one of the category’s fastest-scaling players, has confidentially filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering exceeding $1.3 billion, according to sources.

The Aadit Palicha-led company is looking to raise around INR 11,000 crore through a fresh issue of shares, with the proposed IPO also expected to include an offer for sale by early investors. The move marks Zepto’s most decisive step yet toward tapping public capital as competition in quick commerce intensifies.

IPO Filing Comes As Capital Becomes A Competitive Lever

Zepto received shareholder approval for the IPO at an extraordinary general meeting held on December 23. The company has appointed a broad syndicate of bankers for the issue, including Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal.

The confidential filing route allows Zepto to fine-tune its offering away from public scrutiny, a path increasingly favoured by large startups navigating volatile market conditions. The company has not yet commented publicly on the development.

Quick Commerce Enters A Funding-Heavy Phase

Zepto’s IPO plans come at a time when capital strength has become central to survival in quick commerce. The company competes directly with Swiggy Instamart and Blinkit, both of which have recently strengthened their balance sheets.

Swiggy raised INR 10,000 crore via a qualified institutional placement to fuel its quick commerce ambitions, while Blinkit’s parent Eternal raised INR 8,500 crore through a QIP in November 2024. Against this backdrop, Zepto’s public market entry would give it a significantly larger war chest to sustain expansion and pricing pressure.

Beyond incumbents, the competitive field is also widening, with Amazon, Flipkart Minutes, and BigBasket stepping up their quick delivery bets.

From KiranaKart To 10-Minute Deliveries

Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto began as KiranaKart, offering 45-minute deliveries powered by neighbourhood kirana stores. Within months, the founders pivoted to a dark-store model, rebranding as Zepto in April 2021 and launching 10-minute deliveries in Mumbai.

The strategy triggered rapid expansion, with Zepto scaling operations across most major Indian cities in a relatively short span. That growth, however, came with high costs. Over the past year, the company tightened spending and reworked its unit economics before resuming aggressive expansion following its October fundraise.

Recent Fundraise Set The Stage

In October, Zepto raised $450 million in a mix of primary and secondary transactions, led by the California Public Employees’ Retirement System (CalPERS). Since then, the company has eased customer-facing charges, removing handling and delivery fees for most orders as it pushes for higher order volumes.

To date, Zepto has raised more than $2.45 billion from investors, including Lightspeed Venture Partners, Y Combinator, and Nexus Venture Partners.

Financial Snapshot Ahead Of Listing

Zepto is yet to file its FY25 financial statements. For FY24, the company reported operating revenue of INR 4,454 crore, alongside a net loss of INR 1,249 crore.

If the IPO proceeds as planned, with a listing expected by September next year, Zepto would become one of the youngest Indian startups to go public—less than six years after incorporation. The listing would also result in the country’s top three quick commerce players being traded on public markets, underscoring how quickly the sector has matured.

For Zepto, the IPO is not just a liquidity event. It is a strategic bid to secure long-term capital in a business where speed, scale, and sustained investment increasingly determine who stays in the race.