Zepto Aims to Raise the IPO Size by $800 Million to $1 Billion

According to a media outlet report, Zepto, a quick commerce startup, is thinking of raising the amount of its initial public offering (IPO) to between $800 million and $1 billion, including secondary shares.

The company's intentions for a public offering, which include an expected $5.5 billion in gross sales for the last quarter of FY26 with positive EBITDA (excluding ESOPs), were recently discussed by CEO Aadit Palicha with large mutual funds. According to the article, which cited brokers, this estimated amount is approximately equal to the rapid commerce industry's total gross sales for the prior calendar year.

In mid-2024, the corporation started preparing for its initial public offering (IPO), initially aiming for $450 million in primary capital. The business is considering a range of at least $800 million or more, according to a source cited in the paper. This includes an enhanced primary fundraise and the possibility of selling at least $300–400 million worth of shares in an Offer for Sale (OFS).

Zepto Writing a New Success Story

By surpassing 900 dark stores, Zepto has surpassed expectations and is aiming to reach 1,000 locations. This development is a component of a larger plan to concentrate on growing the company and guaranteeing profitability. At the moment, Zepto receives between 1.1 million and 1.3 million orders every day. Sales of non-food items such as clothing, electronics, and miscellaneous merchandise now account for INR 200 crore of the company's monthly revenue.

Increasing its domestic ownership is one of Zepto's other main objectives. Prior to filing for its IPO, the company wants to have at least 40% of its shares held domestically. Zepto is moving its domicile to India as part of this process by combining its Singaporean parent business with an Indian organisation.

Zepto’s IPO

With plans to add more firms closer to the offering, Goldman Sachs and Morgan Stanley are among the lead banks for Zepto's initial public offering. As it competes with rivals like Flipkart Minutes, Blinkit by Zomato, and Swiggy Instamart in the quickly expanding industry, Zepto secured $350 million in a financing round in November 2024, increasing its total cash reserves to almost $1.4 billion. Although Zepto's IPO pricing is still up in the air, the firm is thinking of comparing its KPIs to those of Blinkit.

Zepto has lost a lot of money despite its expansion, spending between INR 1,000 and 1,100 crore in the previous three months to fight with its main rivals. According to the various media reports, Zepto's high burn rate helped it grow its network of dark stores in both existing and new areas, bringing its gross sales to $3 billion, just below Blinkit's $3.7 billion. Although it too experienced an adjusted EBITDA loss of INR 103 crore, Blinkit claimed a 120% year-over-year rise in gross order value for the December quarter, hitting INR 7,798 crore.

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StartupTalkyNitin Konde