Zepto User Base Falls for the First Time as Quick Commerce Rivalry Intensifies
Zepto, a rapid e-commerce platform, saw its user base fall for the first time in the quarter ending in March. In the December 2025 quarter, there were 49.54 million Zepto users; in March 2026, that number dropped to 47.97 million. Despite massive advertising expenditure and an overall increase in marketing expenditure in absolute terms every year, there has been a noticeable decline in active users.
Although there was a reduction in the mentioned quarterly statistics, the user base data (ATU) saw a 25% year-on-year increase. In the full fiscal year 2025-26, Zepto recorded a loss of INR 5,905.19 crore, an increase over the previous fiscal year's loss of INR 4,699.71 crore.
Zepto’s Financial Dynamics and Preparation for IPO
The company's operational income more than quadrupled from INR 11,109.94 crore in FY25 to INR 22,623.58 crore in FY26, despite growing yearly losses. After a loss of INR 1,831.91 crore in Q4 FY25, Zepto was able to reduce it to INR 1,538.67 crore for the quarter ending March 31, 2026.
The financial facts were revealed in the revised red herring prospectus that the Bengaluru-based company submitted to SEBI in order to solicit INR 8,010 crore through a new share offering (IPO). Existing shareholders will also be making an OFS for 11.35 crore equity shares in conjunction with the new issue. The total size of the issuance is expected to be approximately INR 11,000 crore, according to media estimates.
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Some Interesting Facts of the Story |
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1.Quick-commerce players are increasingly
prioritizing profitability alongside growth. 2.User acquisition costs have risen sharply
due to aggressive competition in the sector. 3.Zepto's IPO will be closely watched as a
barometer for investor appetite in India's fast-growing quick-commerce market |
Zepto’s Revised IPO Filing Reveals Regulatory Scrutiny
In their Updated Draft Red Herring Prospectus (UDRHP), Zepto said that in April, the Directorate of Enforcement (ED) summoned Aadit Palicha and Kaivalya Vohra, two of its founders. Both were summoned in connection with procedures related to the Foreign Exchange Management Act (FEMA), 1999.
An amended filing with SEBI states that the ED has requested papers and information pertaining to the firm and its promoters. The summons further requested information regarding the company's business plan, foreign investments, financial statements, loan and guarantee data, bank accounts, and income tax reports.
The two promoters were served with summonses by the ED on April 8, as stated in the filing. Consequently, the agency has ordered their appearance and the production of documents pertaining to the company's affairs and their own assets. Among the items requested were records of offshore and foreign investments, audited financial statements beginning in FY21, real estate holdings, patterns of shareholding, loan and guarantee information, bank accounts, income tax forms, and a description of the company's business strategy.
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Quick Shots |
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•Zepto reported its first-ever quarterly
decline in active users during the March 2026 quarter. •Active Transacting Users (ATU) fell from
49.54 million in December 2025 to 47.97 million in March 2026. •Despite the quarterly decline, Zepto's
user base remained 25% higher year-on-year. •The drop comes amid intense competition
from rivals such as Blinkit and Swiggy Instamart. |
