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Quick commerce startup Zepto has initiated preparations for its stock market debut, becoming the latest new-age company to line up for a public listing as India’s IPO pipeline builds momentum into 2026.
Zepto has begun confidentially pre-filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The move allows the company to keep detailed financial and operational information private until it receives initial regulatory feedback.
The company is targeting a public listing in the July–September quarter of 2026, with an estimated issue size of around ₹11,000 crore, comprising a mix of fresh equity issuance and offer-for-sale by existing investors.
Valuation and Deal Structure
Zepto was last valued at around $7 billion during its October 2025 funding round and is expected to seek a higher valuation at the time of listing, depending on market conditions.
The IPO is being advised by a consortium of investment banks, including Morgan Stanley, Axis Capital, Goldman Sachs, HSBC, JM Financial, IIFL Securities and Motilal Oswal.
Rapid Growth, Rising Losses
Financial disclosures from recent filings show that Zepto’s revenue growth has been sharp, but losses have widened alongside expansion.
For FY25, the company reported revenue of ₹9,669 crore, more than double the ₹4,224 crore recorded in FY24. However, net losses widened to ₹3,367 crore, compared with ₹1,215 crore a year earlier, reflecting aggressive spending on expansion, customer acquisition and dark store rollout.
Competitive Landscape
Zepto operates in India’s highly competitive quick commerce segment, alongside Blinkit (Zomato) and Swiggy Instamart.
While Blinkit has emerged as the market leader and achieved operating-level profitability, Zepto has positioned itself as a high-speed delivery specialist, with market share estimates of around 29–30 percent.
The sector has recently seen intensified competition following the entry of Flipkart Minutes and Amazon Now, raising pressure on pricing and margins across platforms.
Strategic Readiness for Listing
Earlier this year, Zepto completed its reverse flip, shifting its domicile from Singapore to India, with the parent entity now incorporated as Kiranakart Technologies Ltd. The move was seen as a key step toward an Indian listing.
In December, the company also strengthened its board structure, appointing founders Aadit Palicha and Kaivalya Vohra, along with CFO Ramesh Bafna, as whole-time directors.
Proceeds from the IPO are expected to be used for expanding dark store infrastructure, entering more Tier-2 cities, and scaling higher-margin categories such as electronics, beauty and gifting.
Risks Remain
Despite strong growth, analysts note that cash burn, regulatory scrutiny on delivery practices, and the possibility of prolonged price wars remain key risks for the company ahead of its public market debut.
Zepto’s listing, if completed, would add another high-profile name to India’s growing roster of tech-driven consumer companies tapping the equity markets, reinforcing the trend of startups turning to public capital earlier in their lifecycle. There are other BIG names in IPO in upcoming year such as Flipkart and phonepe which you should also look.
Kaashika is a social media strategist and financial content creator at Lakshmishree. She specialises in simplifying complex IPO and stock market concepts into clear, easy-to-understand content. Having created over 500+ pieces of financial content across reels, blogs, website posts and digital creatives, Kaashika helps audiences connect with the world of finance in a more accessible and engaging way.
