Synopsis: Zepto has filed its updated draft red herring prospectus with SEBI for a ₹9,000–10,000 crore IPO, combining fresh equity of ₹8,010 crore and an offer-for-sale by existing investors. Funds will expand dark stores, technology, logistics, and marketing. Managed by major banks, the listing highlights rising investor confidence in India’s fast-growing quick commerce sector.
Zepto has filed an updated draft red herring prospectus (UDRHP) with SEBI for its upcoming IPO, marking a major step toward one of India’s largest new-age tech listings. The issue combines a fresh equity raise and an offer-for-sale by existing investors, reflecting strong venture-backed exit momentum.
The proposed IPO highlights Zepto’s continued expansion in India’s fast-growing quick commerce sector. The company plans to deploy fresh capital to scale its dark store network, strengthen logistics, invest in technology infrastructure, and support marketing initiatives. The filing also signals rising investor confidence in consumer internet businesses ahead of the public market debut.
IPO Structure and Size
Zepto’s IPO includes a fresh issue of equity shares worth Rs. 8,010 crore, comprising up to 1,60,20,000 shares of Rs. 5 face value each. Alongside this, an offer-for-sale (OFS) by existing investors will add to the overall issue size, which is expected to reach Rs. 9,000–Rs. 10,000 crore, depending on final participation levels.
Offer-for-Sale (OFS) Participants
The offer-for-sale (OFS) in Zepto’s IPO will allow early and institutional investors to partially exit their holdings. Key participants include Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto, Kaiser Foundation Hospitals, and Kaiser Permanente Group Trust, reflecting a mix of venture and strategic backers.
The exact number of shares to be sold through the OFS will be finalised closer to the IPO launch. This decision will depend on investor demand and prevailing market conditions, ensuring that the final allocation balances shareholder exits with overall subscription interest.
Utilisation of IPO Proceeds
Zepto plans to use a major portion of the IPO proceeds to expand its dark store network by setting up new stores across both existing and new geographies. This expansion is aimed at strengthening its quick commerce footprint and improving delivery speed and coverage.
The remaining funds will go toward paying rent for existing dark stores and investing in technology and cloud infrastructure. Additional allocations include supporting marketing and business promotion through its subsidiary Zepto Marketplace Pvt Ltd, as well as funding inorganic growth opportunities such as acquisitions and general corporate purposes.
Book-Running Lead Managers
The IPO is being managed by a consortium of investment banks, including Axis Capital, Morgan Stanley India, Goldman Sachs (India) Securities, Motilal Oswal Investment Advisors, HSBC Securities and Capital Markets (India), JM Financial, and IIFL Capital Services. These firms will oversee pricing, investor outreach, and overall execution of the public offering.
Market Significance
Zepto’s filing underscores the accelerating trend of venture-backed startups entering Indian capital markets. Positioned as one of the largest upcoming listings in the quick commerce space, the IPO reflects improving investor appetite for high-growth consumer internet companies amid intensifying competition and rapid urban demand for ultra-fast delivery services.
Financials & Others
Zepto has shown strong revenue growth alongside continued losses in its latest financial results. In Q4 FY26, the company narrowed its net loss to Rs. 1,538.67 crore from Rs. 1,831.91 crore in the same period last year, while revenue from operations rose sharply by 75.26% to Rs. 7,497.64 crore.
For the full financial year FY26, Zepto’s revenue more than doubled to Rs. 22,623.58 crore compared to Rs. 11,109.94 crore in FY25, reflecting rapid scale in its quick commerce business. However, its annual loss also widened to Rs. 5,905.19 crore from Rs. 4,699.71 crore in the previous fiscal, indicating continued heavy investment in expansion.
As of March 2026, Zepto reported 4.79 crore annual transacting users (ATUs), a 25% year-on-year increase. The company also expanded its dark store network to 1,139 locations, supporting its fast delivery model across multiple cities.
Zepto is a rapid grocery delivery platform in India, specialising in ultra-fast deliveries from dark stores. Founded to meet growing urban demand for convenience, Zepto leverages technology-driven logistics, cloud infrastructure, and a dense network of dark stores to provide customers with groceries and essentials in minutes, positioning itself as a key player in India’s quick commerce sector.
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