Zepto files updated IPO papers, plans to raise Rs 8,010 Cr through fresh issue

Quick-commerce unicorn Zepto has filed its updated draft red herring prospectus with plans to raise Rs 8,010 crore through fresh issue of shares and an offer for sale for 11.347 crore shares from existing investors.

This will be a much awaited initial public offering (IPO) as Zepto intensely competes against Eternal's Blinkit and Swiggy’s Instamart in the quick commerce space.

The shareholders selling in the planned IPO will be Nexus Ventures, Contrary ZEP Holdings, Razor Ventures Zepto, Kaiser Foundation Hospitals, and Kaiser Permanente Group Trust.

Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto reported a revenue of Rs 22,624 crore for FY26 compared to Rs 11,110 crore in FY25. However, the losses widened to Rs 5,905 crore in FY26 compared to Rs 4,700 crore in FY25.

Zepto plans to use the proceeds of the proposed IPO towards expanding its dark stores network, technology, marketing, and acquisitions.

According to a filing by Zepto, the grocery retail in India has undergone a significant transformation, evolving from traditional stores to organised offline retail, then to online retail, followed by slotted delivery and now quick commerce.

It notes that quick-commerce models have revolutionised the way Indians shop for groceries, fulfilling high frequency needs by addressing the growing demand for instant fulfillment, quality products, wider assortment, better convenience and prices.

The filing notes that India’s online grocery market (including ecommerce and quick commerce) is at a size of Rs 0.9 trillion-1.1 trillion ($11 billion-13 billion) in CY2025, with overall market penetration at 1.7-2.0% in CY2025, significantly lower than mature markets like the United States and China at ~12% and ~7%, respectively.

The grocery sector within quick commerce has seen strong momentum, growing ~78% over the past three years, between CY2022 and CY2025. By CY2025, it reached a GMV of ~₹685 billion (~$8.1 billion), underscoring the sector’s rapid rise.

Despite strong momentum, the quick commerce opportunity remains meaningfully underpenetrated and offers significant growth potential and market opportunities, even in the Top 50 cities by population size.