Zepto files for $1.3 billion IPO confidentially

Quick commerce platform Zepto has filed confidential draft papers with the Securities and Exchange Board of India for a $1.3-billion (Rs 11,000-12,000 crore) initial public offering (IPO), said people with knowledge of the development.The Aadit Palicha-led company is looking to raise about Rs 11,000 crore in fresh capital, and the rest from early investors who are offering shares for sale, ET reported on December 25.Making a confidential filing with the markets regulator, a route also taken by the likes of Swiggy, Meesho and Groww, will allow Zepto to revise its issue size before final launch. Zepto did not respond to ET’s queries till press time.The four-year-old company, which will be the youngest new-age venture capital-backed company to go public, got the green light from its shareholders for its IPO at an extraordinary general meeting on December 23. Earlier, startups such as Ola Electric and Honasa Consumer went public six to seven years after incorporation.After a strong listings season in 2025, several other new-age companies, including PhonePe, Flipkart, Shadowfax, Shiprocket and Curefoods, have lined up to go public next year.Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are bankers to Zepto’s issue. The quick commerce firm moved its base back to India from Singapore in January.In October, Zepto closed a $450-million round in a mix of primary and secondary transactions, valuing the company at $7 billion.Bengaluru-based Zepto competes with the likes of Swiggy and Zomato parent Eternal, both of which are listed. Zepto is eyeing its listing in July-September 2026.In a filing with the Registrar of Companies earlier this week, Zepto reported revenue of Rs 9,669 crore for FY25, up 129% year-on-year. Its net loss nearly tripled to Rs 3,367 crore from Rs 1,214 crore. ET first reported on November 5 about Zepto’s plan to file draft IPO papers under the confidential route.Competition stiffeningThe fundraising will give a boost to the company’s balance sheet as it competes against Eternal-owned Blinkit, Swiggy Instamart, Flipkart Minutes and Amazon Now. As of late November, Zepto had around Rs 7,000 crore in cash, while Eternal and Swiggy each have Rs 17,000-18,000 crore on their books currently.Following its October fundraising, around $300 million of which was primary capital, Zepto stepped up competition by offering higher discounts and removing various platform fees in an effort to shore up its order numbers. 126211976The public debut has been in the works since early this year. The initial plan was shelved as the company went ahead with a private financing round led by US pension fund Calpers, with participation from existing backers such as Lightspeed, General Catalyst and Avenir Growth.Swiggy, Zepto’s closest rival in the quick commerce segment with Instamart, raised Rs 10,000 crore in cash earlier this month through a qualified institutional placement after having burned through most of the Rs 4,500 crore it raised from its IPO in November last year. Eternal had raised Rs 8,500 crore in 2024.In an interview with ET earlier this month, Blinkit chief executive Albinder Dhindsa said the public markets’ appetite to fund quick commerce expansion through balance sheet capital is limited, adding that the sector will soon face questions around sustainable growth.According to a September note by BofA Securities, Blinkit had more than 50% of the quick commerce market share, with rivals Zepto, Instamart, BigBasket, Flipkart Minutes and Amazon Now accounting for the rest.