Zepto Board Approves ₹11,000 Crore Raise; Moves to File Confidential IPO Papers
MUMBAI, December 26, 2025 — Zepto, the rapidly growing quick-commerce platform led by Aadit Palicha and Kaivalya Vohra, has officially crossed a critical milestone in its journey to list on the Indian stock exchanges. The company’s board recently approved a proposal to raise up to ₹11,000 crore through a combination of a fresh issue of equity and an Offer for Sale (OFS) by existing shareholders.
Confidential Filing and Listing Timeline
The company is opting for the confidential filing route, a mechanism that allows the firm to submit its draft papers to SEBI for review without making them public immediately. This strategy offers Zepto flexibility to adjust its issue size or timing based on market conditions before the final launch. The IPO is expected to hit the markets in the July-September quarter of 2026.
Financial Performance
Regulatory filings reveal a business in a phase of hyper-growth but with significant capital burn:
Revenue: Zepto reported a turnover of ₹9,669 crore for FY25, more than doubling its FY24 revenue of ₹4,224 crore.
Losses: Net losses widened significantly to ₹3,367 crore in FY25, up from ₹1,215 crore the previous year, highlighting the "cash-hungry" nature of the quick-commerce sector.
Valuation: The startup was most recently valued at $7 billion following a $450 million funding round led by the California Public Employees' Retirement System (CalPERS).
Strategic Shift
To prepare for the listing, Zepto has already:
Converted to a Public Limited Company (renaming from Zepto Private Limited to Zepto Limited).
Shifted its Domicile from Singapore back to India.
Appointed Top Bankers including Morgan Stanley (lead), Goldman Sachs, Axis Capital, and JPMorgan to manage the issue.
When listed, Zepto will be the third major quick-commerce player to go public in India, following the successful listings of Zomato (Blinkit) and Swiggy (Instamart).
Key Words & Terminology
Confidential Filing: A SEBI provision allowing a company to keep its financial data private until the IPO is finalized.
DRHP (Draft Red Herring Prospectus): The preliminary registration document filed with the regulator.
OFS (Offer for Sale): A mechanism where existing shareholders (like early investors) sell their stakes to the public.
Quick Commerce: Ultra-fast delivery (usually 10–20 minutes) of groceries and essentials.
Fresh Issue: New shares issued by the company to raise capital for its own growth/operations.
Dark Stores: Small warehouses used exclusively for fulfilling online orders in specific neighborhoods.