In a landmark move for India's startup ecosystem, quick-commerce leader Zepto has taken a decisive step towards going public. The company filed its preliminary draft papers with the Securities and Exchange Board of India (Sebi) on Saturday, seeking to raise a substantial Rs 11,000 crore through an initial public offering (IPO).
Confidential Route for Market Debut
Zepto is opting for a confidential pre-filing route for its stock market debut, which is planned for next year. This approach, gaining popularity among new-age companies, allows greater flexibility in IPO planning and enables firms to better respond to prevailing market conditions before making their public debut. If successful, this move will position Zepto as one of India's youngest listed startups, joining its rivals Zomato (which owns Blinkit) and Swiggy (with Instamart) on the public exchanges.
The company confirmed it has submitted the "pre-filed draft red herring prospectus with Sebi and the stock exchanges" for the proposed IPO on the main board. This filing follows the successful listings of its competitors, with Zomato going public in 2021 and Swiggy making its debut in November 2024.
Strong Financial Backing and Rapid Growth
Zepto's journey to the public markets is backed by robust financials and heavyweight investors. The company is currently valued at $7 billion and has raised a total of $1.8 billion (approximately Rs 16,000 crore) since its inception. A significant recent infusion came in October, when it secured $450 million from the California Public Employees' Retirement System (CalPERS).
The startup achieved the coveted unicorn status in August 2023 after a $200 million funding round that pushed its valuation to $1.4 billion. Founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto revolutionized grocery delivery in India with its promise of 10-minute deliveries.
Operational Scale and Market Presence
Zepto's operational footprint has expanded rapidly across major Indian cities. By September this year, the company was operating a network of over 900 dark stores to fulfill its quick-delivery promise. The scale of its operations is reflected in its financials, with the company spending between Rs 1,000 to Rs 1,100 crore on operations and achieving gross sales of $3 billion (around Rs 26,000 crore).
The proposed IPO marks a critical inflection point not just for Zepto, but for India's broader quick-commerce and startup landscape. It signals the maturation of a sector that has seen intense competition and rapid customer adoption. A successful listing will provide Zepto with fresh capital to fuel further expansion, deepen its technology stack, and potentially explore new verticals, all while offering public market investors a direct stake in India's hyper-growth quick-commerce story.
