Zepto Board Approves INR 11,000 Crore Fundraise Ahead of IPO Filing

StartupTalky News

26 Dec 2025 — 3 min read

Zepto Board Approves INR 11,000 Crore Fundraise Ahead of IPO Filing

Indian quick commerce firm Zepto has taken a major step towards going public, with its board approving plans to raise up to INR 11,000 crore (about $1.3 billion) ahead of a confidential filing with the Securities and Exchange Board of India (SEBI). This news marks a significant moment for the young startup as it moves closer to an initial public offering (IPO) that could take place in 2026.

According to regulatory filings with the Registrar of Companies (RoC), the board gave approval at an extraordinary general meeting on 23rd December to issue fresh shares worth up to ₹11,000 crore. A part of this capital will also come from existing investors selling some of their stakes.

The capital raised in the IPO will be used to support Zepto’s growth, improve infrastructure, and expand its quick commerce operations, which promise ultra-fast delivery of groceries and essentials.

Confidential IPO Filing Expected This Week

Zepto is preparing to confidentially file its draft red herring prospectus (DRHP) with SEBI as early as Friday, 26 December 2025. This confidential route allows the company to share its draft IPO papers with the regulator without immediate public disclosure, giving it flexibility to make changes later based on feedback.

Once pre-filed, Zepto will begin the formal IPO process ahead of a likely public listing next year. Industry reports suggest the total size of the IPO could be around $500 million to $1.3 billion, depending on final approvals and market conditions.

Under the confidential filing approach, Zepto will be able to discuss its draft document with SEBI and respond to queries before officially launching the IPO. This method has become popular among startups aiming for larger offerings while retaining flexibility.

Growth, Finances and Competitive Landscape

Zepto was founded in 2020 and has quickly grown into one of India’s most talked-about quick commerce companies. Its business model centres on delivering groceries and everyday items within minutes, using a network of dark stores in major cities.

The company’s latest financial filings show that revenue surged sharply in fiscal year 2025, while losses also widened due to heavy investment in expansion and delivery infrastructure.

Despite rising competition from larger players such as Blinkit (backed by Zomato) and Instamart (operated by Swiggy), Zepto has continued to attract investor interest. If its IPO goes ahead as planned, Zepto may become one of the youngest Indian startups to list on the stock market, joining a growing list of tech and delivery firms that are tapping public markets for capital.

What This Means for the IPO Market

The Zepto IPO comes at a time when India’s public markets are gearing up for a busy year. Over 190 companies are reported to be preparing for listings in 2026, aiming to collectively raise more than INR 2.5 lakh crore across sectors. Zepto’s entry could add momentum to this broader surge in IPO activity.

For investors and the quick commerce sector alike, Zepto’s progress will be closely watched in the coming months as it moves from private startup to publicly listed company.