IPO – Zepto Moves Ahead With Rs 8,010 Crore Public Offering Plan
IPO – Zepto has taken a significant step toward entering the Indian stock market by submitting an updated draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for its proposed initial public offering. The company plans to raise Rs 8,010 crore through a fresh issue of equity shares, while existing investors will also sell a portion of their holdings through a separate offer-for-sale segment. With this move, Zepto is expected to become the first pure-play quick commerce company to be listed on Indian exchanges.
Details of the Public Issue
According to the revised filing, the fresh issue will consist of equity shares with a face value of Rs 5 each, aggregating up to Rs 8,010 crore. In addition to the primary fundraising exercise, the IPO will include an offer-for-sale of up to 113.46 million equity shares by existing shareholders. The proceeds from the fresh issue are expected to support the company’s future expansion plans and operational requirements.
Existing Investors to Reduce Stakes
Several institutional investors have chosen to participate in the offer-for-sale component of the IPO. Among the largest sellers are Nexus Ventures VI Holdings and Nexus Ventures VII Holdings, which plan to offload substantial portions of their shareholding. Other investors participating in the share sale include Contrary ZEP Holdings LLC, Razor Ventures Zepto LLC, Kaiser Foundation Hospitals, and Kaiser Permanente Group Trust.
The offer-for-sale will allow these investors to partially monetize their investments while maintaining the company’s path toward public listing.
Lead Managers Appointed for the Issue
Zepto has appointed a consortium of leading investment banks and financial institutions to manage the public offering. The book-running lead managers include Motilal Oswal Investment Advisors, Morgan Stanley India Company, Goldman Sachs (India) Securities, JM Financial, IIFL Capital Services, HSBC Securities and Capital Markets (India), and Axis Capital.
These institutions will oversee the IPO process, including regulatory compliance, investor outreach, and share allocation procedures.
Revenue Growth Reflects Rapid Business Expansion
The updated prospectus highlights the company’s strong revenue growth over the last three financial years. For the financial year ending March 31, 2026, Zepto reported operational revenue of Rs 2,26,235.84 million. This represents a substantial increase compared with Rs 1,11,099.47 million recorded in FY25 and Rs 44,545.16 million reported in FY24.
The sharp rise in revenue reflects the growing adoption of quick commerce services across urban markets, supported by the company’s expanding delivery network and increasing customer base.
Losses Continue Despite Higher Revenue
While revenue has grown rapidly, the company continues to report significant losses as it scales operations. Zepto posted a restated loss of Rs 59,051.92 million for FY26. This compares with a loss of Rs 46,997.14 million in FY25 and Rs 12,147.94 million in FY24.
The widening losses indicate the substantial investments required to strengthen logistics infrastructure, improve delivery capabilities, and maintain competitiveness in the fast-growing quick commerce sector.
Rising Expenses Driven by Operations
The prospectus also reveals a notable increase in overall expenditure. Total expenses climbed to Rs 2,90,267.46 million in FY26, up from Rs 1,62,410.69 million in the previous financial year.
A major share of these costs was linked to the procurement of goods and supply chain operations. Purchases of traded goods alone reached Rs 1,84,849.75 million during FY26, highlighting the scale of inventory and distribution activities required to support the company’s rapid delivery model.
As Zepto prepares for its stock market debut, investors will closely monitor its ability to balance strong revenue growth with a path toward long-term profitability in India’s increasingly competitive quick commerce industry.