Zepto files updated IPO papers with Sebi; plans ₹8,010 crore fresh issue

Quick-commerce platform Zepto has filed updated draft papers with the Securities and Exchange Board of India (Sebi) to raise ₹8,010 crore through a fresh issue of shares as part of its proposed initial public offering (IPO).

The issue will also include an offer for sale (OFS) of 11.35 crore equity shares by existing shareholders, according to the updated draft red herring prospectus (UDRHP). The total IPO size at around ₹11,000 crore, with the company expected to hit the capital markets in July. If listed, Zepto will join listed rivals Eternal and Swiggy , competing directly with their quick-commerce businesses, Blinkit and Instamart, respectively.

Use of proceeds

The company plans to deploy the proceeds from the fresh issue towards expanding its dark store network across existing and new geographies, meeting lease rental obligations for existing stores, investing in technology and cloud infrastructure, funding marketing and business promotion initiatives, pursuing inorganic growth opportunities, and supporting general corporate purposes.

IPO journey

Zepto, originally incorporated as Kiranakart Technologies Pvt. Ltd in December 2020, was renamed Zepto Pvt. Ltd in April 2025 and converted into a public limited company in December 2025.

The company had initially filed its IPO papers through Sebi's confidential pre-filing route in December, a mechanism that allows companies to seek regulatory feedback without publicly disclosing draft documents. The route has gained popularity among firms seeking greater flexibility during IPO preparations.

Founded by Aadit Palicha and Kaivalya Vohra, Zepto has emerged as one of the leading players in India's fast-growing quick-commerce market, built around its promise of 10-minute grocery deliveries.

Strong growth in operations

For FY26, Zepto reported revenue from operations of ₹22,624 crore and a net receivables value (NRV) of ₹24,816 crore. The company processed an average of 1.75 million orders daily during the year and operated 1,139 stores as of March 31, 2026. Its annual transacting user base stood at nearly 48 million customers.

During the quarter ended March 2026, Zepto fulfilled approximately 210 million orders, equivalent to around 2.33 million orders per day. The company's operating metrics indicate significant scale-up alongside improving efficiencies. Total orders increased from 134 million in the September quarter (Q2FY26) to 210 million in the March quarter (Q4FY26) while average daily orders rose from 1.46 million to 2.33 million during the same period.

Orders per day per store improved to 2,140 from 1,433, while total cost per order declined to ₹128 from ₹181. The adjusted EBITDA loss per order also narrowed substantially, falling to ₹59 from ₹110.

Merchant bankers

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 are acting as the book-running lead managers to the issue.