Zepto Gets SEBI Nod For $1.2 Bn IPO, Updated DRHP Due In 6-8 Weeks
Quick commerce major Zepto has secured the Securities and Exchange Board of India's (SEBI) approval for its proposed initial public offering worth around ₹11,000 Cr to ₹12,000 Cr (about $1.2 billion), clearing a key regulatory hurdle for what is set to be one of India's most closely watched tech listings. The Bengaluru-based startup is now expected to file its updated Draft Red Herring Prospectus (DRHP) within the next six to eight weeks, paving the way for its market debut.
SEBI Observation Letter Signals Go-Ahead
According to the latest update on the regulator's website, SEBI issued an observation letter to the quick commerce startup earlier today. In SEBI's parlance, the issuance of an observation letter signals a green light for the company to proceed with its public offering.
IPO Details and Filing Timeline
Zepto had confidentially filed its DRHP in December 2025 for an IPO in the range of ₹11,000 Cr to ₹12,000 Cr. The proposed public issue is expected to largely comprise a primary capital raise, although the final issue size and pricing are yet to be finalised. In December last year, the startup secured shareholder approval to raise up to ₹11,000 Cr through a fresh issue of shares via the public offering.
Company Background and Founders
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has emerged as one of the leading players in India's rapidly expanding quick commerce sector. The company competes with Blinkit, owned by Eternal (formerly Zomato), and Swiggy Instamart, alongside newer entrants such as Amazon Now and Flipkart Minutes.
Quick Commerce Market Heats Up
The SEBI nod arrives at a moment when India's quick commerce industry has become one of the most fiercely contested segments of the country's consumer internet economy. The 10-minute delivery model, once viewed as an experimental category, has scaled into a mainstream channel for grocery, daily essentials and increasingly, electronics and apparel.
Confidential Filing Route Explained
Zepto's confidential pre-filing route, introduced by SEBI in 2022, allows companies to interact with the regulator without disclosing sensitive financial and strategic information publicly until they are ready to launch the issue. The mechanism has been adopted by several new-age firms looking to retain flexibility on timing and pricing amid volatile market conditions.
IPO to Fuel Expansion and Investor Exits
The startup's listing plans come as a wave of Indian consumer internet and tech companies prepare to tap public markets, following the listings of Swiggy, Ola Electric and others. The forthcoming IPO is expected to provide partial exits to early backers while funding Zepto's expansion of dark stores, technology infrastructure and category additions.
Growth Journey Since Launch
Founders Aadit Palicha and Kaivalya Vohra, both Stanford dropouts, launched Zepto at the height of the pandemic-era demand for instant delivery. The company has since raised multiple rounds of funding from global and domestic investors, scaling its dark store network across major Indian cities to compete head-on with deep-pocketed rivals.
"In SEBI's parlance, issuance of observation letter is a go ahead to proceed with the IPO," the regulatory update noted, formalising the next step in Zepto's listing journey.
Muskaan Kapoor
Frequently Asked Questions
What approval has Zepto received from SEBI?
Zepto has received an observation letter from SEBI, which in regulatory parlance serves as a go-ahead to proceed with its proposed initial public offering.
How much is Zepto planning to raise through its IPO?
The quick commerce company is planning to raise around ₹11,000 Cr to ₹12,000 Cr, equivalent to approximately $1.2 billion, through its public offering.
When did Zepto file its DRHP?
Zepto confidentially filed its Draft Red Herring Prospectus with SEBI in December 2025. The company is now expected to file an updated DRHP within the next six to eight weeks.
Who founded Zepto and when?
Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra, two Stanford dropouts who built the company into a leading quick commerce platform in India.
Who are Zepto's main competitors?
Zepto competes with Blinkit and Swiggy Instamart in the quick commerce space, along with newer entrants such as Amazon Now and Flipkart Minutes.
Will Zepto's IPO be a primary or secondary issue?
The proposed public issue is expected to largely comprise a primary capital raise, though the final issue size and pricing are yet to be finalised. Shareholders had earlier approved raising up to ₹11,000 Cr through a fresh issue of shares.
Where is Zepto headquartered?
Zepto is headquartered in Bengaluru and operates across major Indian cities through its network of dark stores supporting 10-minute deliveries.
