How Large Is Zepto’s Proposed IPO?
Quick commerce unicorn Zepto has moved a step closer to its stock market debut by filing an Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).
The filing comes exactly one month after the market regulator granted approval for the company’s public listing plans.
According to the updated filing, the IPO will comprise a fresh issue of equity shares worth up to ₹8,010 crore alongside an Offer For Sale (OFS) of up to 113.47 million shares by existing shareholders.
The issue is expected to be one of the largest startup IPOs in India and could become a major milestone for the country’s rapidly evolving quick commerce sector.
Zepto is also considering a pre-IPO placement of up to ₹1,602 crore before filing its final Red Herring Prospectus. If completed, the amount raised through the pre-IPO round will be adjusted against the fresh issue size.
Which Investors Are Selling Shares In The OFS?
Several prominent investors are set to partially monetize their holdings through the offer-for-sale component.
Among the selling shareholders are Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto LLC, Kaiser Foundation Hospitals, and Kaiser Permanente Group Trust.
Nexus Venture Partners is expected to account for approximately 77% of the total OFS portion, making it the largest selling shareholder in the proposed issue.
The partial exit allows early investors to realize returns while continuing to retain exposure to Zepto’s long-term growth potential.
The participation of marquee venture capital and institutional investors underscores the significant value creation achieved by the company since its founding in 2020.
Why Is Zepto Using A Special IPO Route?
According to the filing, Zepto is launching its public issue under SEBI Regulation 6(2), a framework that allows companies without the conventional profitability track record required for public listing to access capital markets.
The provision has increasingly become a preferred route for high-growth technology startups that prioritize expansion and market share over short-term profitability.
While Zepto remains loss-making, the company has demonstrated strong revenue growth and scale, making it eligible for listing under this framework.
The route enables investors to participate in high-growth businesses while allowing startups to access public capital for future expansion.
How Has Zepto Performed Financially?
Zepto delivered strong top-line growth during FY26, reflecting the rapid expansion of India’s quick commerce market.
For the financial year ended March 2026, the company reported revenue of ₹22,623 crore, representing a two-fold increase compared to the previous year.
The growth was driven by increasing order volumes, expanding dark store operations, wider geographic reach, and rising consumer adoption of instant delivery services.
However, the company continues to invest aggressively in growth, logistics infrastructure, customer acquisition, and market expansion.
As a result, its losses widened by approximately 25% to ₹5,905 crore during the fiscal year.
Despite the losses, investors remain optimistic about the long-term potential of the quick commerce sector as consumer demand for rapid deliveries continues to increase.
What Is Zepto’s Growth Story?
Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto has emerged as one of India’s leading quick commerce platforms.
The company specializes in delivering groceries, daily essentials, and household products within minutes through a network of strategically located dark stores.
Originally incorporated as Kiranakart Technologies Private Limited, the company was renamed Zepto Private Limited in April 2025 before converting into a public limited company in December 2025 as part of its IPO preparations.
Who Is Managing The IPO?
The proposed public issue is being managed by a consortium of leading investment banks.
Axis Capital, Morgan Stanley, Goldman Sachs, Motilal Oswal Investment Advisors, HSBC Securities and Capital Markets (India), JM Financial, and IIFL Capital Services have been appointed as the book-running lead managers.
KFin Technologies will serve as the registrar to the issue.
With fresh capital earmarked for future growth and a rapidly expanding business, Zepto’s IPO is expected to be closely watched by investors looking to gain exposure to India’s booming quick commerce market.
