Zepto's Rs 8,010 Crore IPO: Revenue, Losses Up, What Investors Must Know

Quick commerce giant Zepto has taken a major step towards its stock market debut.

The Bengaluru-based startup has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), unveiling the contours of what could become one of India's biggest new-age technology listings.

The company plans to raise Rs 8,010 crore through a fresh issue of shares. Existing investors will also sell 11.35 crore equity shares through an offer for sale (OFS), taking the total issue size to an estimated Rs 11,000 crore, according to people familiar with the matter.

The IPO is expected to hit the market in July and could value Zepto at around $10 billion, a sharp jump from its previous valuation of $7 billion. Follow Markets Live Updates

Zepto IPO: Founders Keep Shares Intact

One detail stands out in the filing.

Unlike many startup IPOs where founders partially cash out, Zepto's promoters have decided not to sell any stake.

Co-founders Aadit Palicha and Kaivalya Vohra, along with promoter entities Lazarus Trust and The Vohra Trust, are completely skipping the OFS.

The promoter group currently owns 18.47 per cent of the company, amounting to more than 232 crore equity shares.

The move is likely to be viewed positively by investors as it signals continued confidence in the company's long-term growth prospects.

Zepto IPO: Who's Cashing Out?

The sellers in the OFS are largely early institutional investors and venture capital funds.

The biggest seller is Nexus Ventures, which will collectively offload more than 8.77 crore shares through two investment entities.

Other investors reducing their holdings include:

• Nexus Venture Partners
• Contrary Capital
• Razor Ventures
• Kaiser Foundation Hospitals
• Kaiser Permanente Group Trust

For many early investors, the IPO offers an opportunity to partially monetize investments made years before India's quick-commerce boom exploded.

Zepto IPO: Where Will The Money Go?

Zepto plans to deploy the fresh capital across multiple growth initiatives.

A significant portion will be used to expand its dark store network across existing and new cities. The company will also repay rents for existing dark stores, strengthen technology and cloud infrastructure, and fund marketing and promotional spending through subsidiary Zepto Marketplace.

Part of the proceeds has also been earmarked for potential acquisitions and general corporate purposes.

The strategy reflects Zepto's determination to consolidate its position in India's fiercely competitive quick-commerce market, where speed, scale and logistics efficiency are critical.

Zepto IPO: Battle For Quick-Commerce Dominance

Zepto enters the public market at a time when competition in the sector is intensifying. The company is locked in a three-way battle with Blinkit and Instamart.

Industry estimates suggest Blinkit currently commands more than 40 per cent market share, while Zepto and Instamart each account for over 20 per cent.

The race is no longer just about delivering groceries in minutes. It is increasingly about owning consumer attention, expanding product categories and building dense networks of dark stores that can support rapid deliveries.

Zepto IPO: Revenue Is Booming, Losses Too

Few can question Zepto's growth trajectory.

The company reported revenue from operations of Rs 22,623.58 crore in FY26, more than double the Rs 11,109.94 crore recorded in FY25.

That translates into annual growth of nearly 104 per cent. In the March quarter alone, revenue surged 75.26 per cent to Rs 7,497.64 crore.

The scale of operations is equally striking. During FY26, Zepto processed around 64 crore orders, averaging more than 17 lakh orders every day.

In the March quarter, the platform handled 21 crore orders, or roughly 23.3 lakh orders daily. Its annual transacting user base rose 25 per cent year-on-year to 4.79 crore users as of March 2026. The company also expanded its dark store network to 1,139 locations.

The growth story, however, comes with a caveat. Zepto's annual loss widened to Rs 5,905.19 crore in FY26 from Rs 4,699.71 crore a year earlier. The company continues to spend aggressively on expansion, customer acquisition and logistics infrastructure.

There was some improvement in quarterly profitability. Net loss narrowed to Rs 1,538.67 crore in the March quarter from Rs 1,831.91 crore a year earlier.

Yet the broader challenge remains the same: can Zepto convert rapid growth into sustainable profits?

Abhishek Bhilwaria, Partner at BhilwariaFinserv, believes the offering presents a classic dilemma for investors. “Zepto presents a classic growth-stage dilemma for investors, where its impressive top-line growth and commanding market share are actively counterbalanced by widening annual losses and intense competition from deep-pocketed rivals.”

According to Bhilwaria, the key issue is whether the company can use the fresh public capital to move from aggressive cash burn towards long-term profitability.

“The success of this IPO ultimately depends on whether investors believe Zepto can leverage its massive capital infusion to transition from high-velocity cash burn to sustainable earnings growth,” he said.

Zepto IPO: What Investors Should Watch

As Zepto prepares for its market debut, investors will closely monitor four factors:

• Path to profitability: Can losses narrow meaningfully over the next few years?
• Market share gains: Can Zepto challenge Blinkit's leadership position?
• Expansion efficiency: Will new dark stores generate healthy order volumes?
• Competitive intensity: How much capital will rivals continue to deploy in the battle for customers?

ED Sought Information From Founders

Zepto disclosed in its updated DRHP that co-founders Aadit Palicha and Kaivalya Vohra received summons from the Enforcement Directorate (ED) in April 2026 under provisions of the Foreign Exchange Management Act (FEMA).

According to the filing, the agency sought a range of documents and information, including details related to foreign investments, audited financial statements for FY21, shareholding records, loans and guarantees, income-tax filings, bank account information, and other corporate records.

The company said both founders appeared before the ED and submitted the information sought by the agency. Vohra met officials on April 17 and April 22, while Palicha appeared on April 20 and May 15.

Zepto said it has also furnished additional details requested by the ED following those interactions. These included information related to the company's holding structure, the ongoing corporate restructuring scheme, business agreements, invoices and other operational records.

The company noted that it has not received any further communication from the ED since then. However, it added that there can be no assurance that the matter will not lead to additional queries, a formal investigation, legal proceedings or any penalties in the future.