Quick-commerce unicorn Zepto has received an in-principle nod from the Securities and Exchange Board of India (SEBI) for its highly anticipated $1.2 billion (approx. ₹10,000 crore) Initial Public Offering (IPO).
The company is currently in the “testing the waters” phase—a regulatory provision that allows it to gauge interest from institutional investors before formally filing its final offer documents. This makes Zepto one of the youngest startups in Indian history to prepare for a public listing, trailing only behind the recent debuts of Zomato and Swiggy.
1. IPO Structure & Valuation
Zepto is aiming for a public market valuation in the range of $7 billion to $8 billion, a significant jump from its status as a newly-minted unicorn just two years ago.
2. The “Testing the Waters” Strategy
By utilizing this specific SEBI route, Zepto is keeping its cards close to its chest while fine-tuning its pitch.
- Confidential Filing: The startup filed its draft papers confidentially in December 2025, allowing it to address regulatory observations without making its internal financials public immediately.
- Valuation Discovery: The “testing” phase allows the founders, Aadit Palicha and Kaivalya Vohra, to consult with anchor investors to ensure the market has the appetite for another quick-commerce giant following the mixed performance of the sector in 2025.
3. Financial Performance: Growth vs. Burn
Zepto’s IPO pitch centers on its explosive revenue growth and rapidly improving unit economics.
- Revenue Surge: For FY25, Zepto reported total sales of ₹9,668.8 crore, a massive 129% jump from the previous year.
- Narrowing Losses: While net losses swelled to ₹3,367 crore due to a “dark store blitz,” the company’s contribution margin per order has reportedly improved significantly, with the management targeting EBITDA breakeven by late 2026.
- Infrastructure: The company now operates over 900 dark stores and is diversifying into high-margin categories like Zepto Cafe, beauty, and electronics.
4. Use of Proceeds: The 2,000-Store Goal
The capital raised from the IPO will be primarily used to win the “Quick Commerce War” against Blinkit and Swiggy Instamart.
- Dark Store Expansion: Zepto plans to more than double its footprint, aiming for 2,000 dark stores by 2028.
- Tier-2 Entry: A significant portion of the funds will go toward launching services in 40-50 new cities, including Vizag, Chandigarh, and Nashik.
- AI & Logistics: Heavy investment in automated “micro-fulfillment” technology to maintain its signature 10-minute delivery promise at a higher scale.
5. The “Reverse Flip” Complete
The IPO approval comes just months after Zepto successfully moved its parent entity’s domicile back to India from Singapore in January 2026. This “reverse flip” was a mandatory requirement for an Indian listing and signals the company’s commitment to the domestic capital market.
“We are growing 20-25% every quarter on order volume, and our burn is consistently going down,” a Zepto spokesperson noted. “The IPO will give us the war chest needed to maintain our capital efficiency while we scale to 100% year-on-year growth.”