Zepto Set to Initiate IPO Process with $500 Million Filing in India

India’s quick-commerce pioneer Zepto Ltd. is poised to take a major step toward public markets, with filings for an initial public offering (IPO) of ~$500 million in Mumbai. This move could mark one of the most significant consumer-internet listings on the horizon and underscores the maturation of India’s rapid delivery economy. 

Company Overview: From 10-Minute Delivery to Unicorn Scale

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto began as a hyper-local grocery delivery platform promising deliveries within 10 minutes of order placement. Since then, it has expanded into a technology-driven quick commerce ecosystem, serving broad fast-moving consumer goods through a dense network of dark stores across major urban centres. 

Over a short period, Zepto has scaled rapidly:

• Grew to handle close to 2 million daily orders in 2025. 
• Operates 1,000+ dark stores strategically placed for rapid fulfilment. 
• Revenue more than doubled to ₹11,110 crore in FY25, up from about ₹4,454 crore in FY24. 
  

The company’s growth has been backed by industry-leading investors and billions in funding, laying groundwork for its public market bid.

Recently, the company moved a step closer to a listing by converting itself into a public limited company, a regulatory prerequisite for an IPO. 

The planned offering  likely routed confidentially through SEBI under draft papers  is expected to include both fresh issuance and secondary sales by existing investors, carried out with the support of global and domestic banks, including Axis Bank, Morgan Stanley, HSBC and Goldman Sachs. 

Business Model & Unit Economics

Zepto’s core proposition is ultra-fast delivery of everyday essentials, enabled by:

Dark stores, small fulfilment centres in high-density urban areas;

Mobile-first logistics and routing technology;

Repeat customer engagement through app experience, memberships, and offers.

This model generates revenue primarily through product sales, delivery charges, and platform fees, with unit economics improving as delivery density increases.

Gross order value (GOV) tripled to ~$3 billion within eight months, indicating strong traction. More recently, the company is nearing an annualized GOV of $4 billion as of April 2025.

Many dark stores are turning profitable on an EBITDA-adjusted basis, a sign of improved operational leverage. 

However, the business remains capital intensive and historically burn-heavy, with cash burn rates significantly higher than peers, a challenge Zepto is attempting to address through cost reductions and better economies of scale. 

Strong Funding and Growth Backdrop

Zepto IPO plans come after an active fundraising phase. In 2025, the company raised about $450 million at a $7 billion valuation, led by marquee names like General Catalyst and Avenir Growth.

Performance metrics add weight to this momentum: revenue surged by nearly 150 % to around ₹11,110 crore in FY25, up from ₹4,454 crore in the previous year, reflecting rapid scale even as unit economics continue to improve. 

Zepto has also expanded its ESOP pool to over $500 million, one of the largest among Indian consumer internet startups, signaling an attempt to broaden employee participation ahead of a public debut. 

Let’s  Look at India’s Quick-Commerce Landscape

Blinkit (Zomato):  Blinkit (Zomato) remains the market leader 

Market Share: ~45–52%

Dark Stores: 1,500+ (targeting ~2,000 by end-2025)

Ownership: Zomato (market cap ~$28 billion)

Weekly GOV: ~₹845 crore

Swiggy Instamart

Market Share: ~25–27%

Dark Stores: 1,062+ across 124+ cities

Parent Valuation: ~$11 billion (post-IPO)

Weekly GOV: ~₹405 crore

Zepto 

Market Share: ~21–23%

Dark Stores: ~700–750 across 15+ cities

Valuation: ~$7 billion (Oct 2025)

Financials and path to profitability

• The company has consistently operated at a net loss, though margins have shown improvement and there are industry expectations of EBITDA profitability in near term. 

• Cash Burn Reduction: Cost optimization initiatives, including cuts in marketing spend and workforce rationalisation, are part of the strategy to slash monthly cash burn and strengthen the runway.

Zepto IPO gives rise to: 

Zepto’s anticipated IPO is significant for several reasons:

Validation of India’s quick-commerce ecosystem as it matures from private investment to public markets;

A test case for heavily subsidised, convenience-first business models seeking sustainable economics;

A bullish signal for India’s startup IPO pipeline, a trend highlighted by data showing more than 20 startups readying listings across sectors including marketplaces, consumer internet, and niche B2B platforms. 

Conclusion

Zepto’s planned $500 million IPO filing in India marks a defining moment for both the company and the quick-commerce industry. Backed by strong revenue growth, deep investor support, and expanding scale, the company enters the public market conversation with momentum. Yet, its long-term success will ultimately hinge on how convincingly it can balance growth with profitability.

As Zepto moves closer to filing its DRHP, all eyes will be on its financial disclosures and on whether India’s markets are ready to reward speed-driven businesses with sustainable fundamentals.