Zepto Gets SEBI Nod for IPO and Eyes Rs.9,300 Crore IPO
The fast-growing commerce startup, Zepto, has obtained authorization from the Securities and Exchange Board of India (SEBI) for its initial public offering, thereby paving the way for the company to submit an updated draft red herring prospectus (UDRHP).
The company headquartered in Mumbai aims to generate funding in the range of $800 million to $1 billion, equivalent to Rs.7,500 crore to Rs.9,300 crore, through a public offering, according to reports.
Earlier this year, the company discreetly submitted its preliminary documentation. Having secured regulatory approval, Zepto is anticipated to expedite its readiness for an initial public offering, positioning it as potentially one of the swiftest emerging consumer internet companies to enter the public market.
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The company spearheaded by Aadit Palicha has initiated outreach efforts with institutional investors through pre-IPO roadshows. In these discussions, Zepto presented a strategic plan outlining its path to attain post-tax pofitrability for the entire fiscal year by FY29, while consistently maintaining a quarterly growth rate of 25-30 percent.
The scheduled public offering takes place against the backdrop of escalating rivalry in India’s rapidly expanding quick commerce sector. Within this market, Zepto is in competition with Blinkit, Swiggy Instamart, Amazon India's Amazon Now, Flipkart Minutes, and BigBasket, among others. Over the past year, Zepto has significantly expanded its operational capabilities.
Previously, the company managed to deliver approximately 1.5 to 1.7 million orders daily.
Currently, it is successfully processing and completing over 2.5 million orders each day.
The intention to initiate an IPO coincides with a period marked by increased fluctuations in equity markets, primarily due to the continuing conflict in the West Asian region.
Meanwhile, the prominent fintech company PhonePe has postponed its plans for listing, citing prevailing uncertainties in macroeconomic conditions. The financial performance of Zepto illustrates the swift growth occurring within the industry.
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The organization disclosed total revenues, inclusive of ancillary income, amounting to Rs.9,668.8 crore for fiscal year 2025, marking a 129 percent increase compared to Rs.4,223.9 crore reported the previous year.
Net losses expanded by 177 percent year-over-year, reaching Rs.3,367.3 crore, as the company persistently invested heavily in expansion efforts, dark stores, and customer acquisition strategies.
In contrast, Blinkit, a subsidiary of Eternal, disclosed revenues amounting to Rs.5,206 crore for the fiscal year 2025, whereas Swiggy reported earnings of Rs.2,252 crore from its Instamart service within the identical timeframe. The company is reportedly receiving counsel from investment banks such as Axis Capital, Morgan Stanley, HSBC, Goldman Sachs, and Motilal Oswal concerning the prospective initial public offering. In addition to Zepto, the Securities and Exchange Board of India (SEBI) has also approved the initial public offering (IPO) applications for Dhoot Transmission.
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Meanwhile, Surgiwear, a prominent domestic manufacturer of implantable medical devices, has received the green light as well. Horizon Industrial Parks, supported by Blackstone, is another entity that has gained SEBI's approval. Furthermore, Crystal Crop Protection, known for its comprehensive agricultural solutions, has been cleared. Lastly, Hotel Polo Towers, within the hospitality sector, has had its IPO proposal sanctioned.