The Indian quick-commerce landscape is bracing for its next massive market debut. Zepto, the Mumbai-based delivery unicorn, has taken a definitive step toward the public markets. The company’s board recently approved a plan to raise up to Rs 11,000 crore ($1.3 billion approx.) through a combination of a fresh equity issue and an Offer for Sale (OFS) by existing shareholders.

This strategic move comes just as the company prepares to submit its Draft Red Herring Prospectus (DRHP) confidentially, a process expected to commence on December 26.

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In preparation for its listing, Zepto has officially converted from a private entity into a public limited company. This transition is a regulatory prerequisite for any firm seeking to list on Indian stock exchanges. By opting for a confidential IPO filing a route recently utilized by other tech giants Zepto can keep its sensitive financial and strategic data shielded from public view until closer to the actual launch date.

Regulatory filings accessed by Entrackr highlight Zepto’s aggressive “growth-at-all-costs” strategy. The company’s scale has skyrocketed over the past year:

• Revenue Surge: For the financial year ended March 2025 (FY25), Zepto reported a total turnover (including other income) of Rs 9,668.76 crore. This is more than double the Rs 4,223.91 crore reported in FY24.
• Widening Losses: While the top line surged, profitability remains elusive. Net losses widened significantly to Rs 3,367.28 crore in FY25, up from Rs 1,214.67 crore in the previous fiscal year.

The increase in losses is largely attributed to the company’s rapid expansion of dark stores, marketing spends, and the competitive race to dominate the 10-minute delivery market.

Led by founders Aadit Palicha and Kaivalya Vohra, Zepto has become a magnet for global capital. The company recently closed a $450 million funding round, bringing its total capital raised since inception to a staggering $2.3 billion. Remarkably, $1.8 billion of that total has been secured since January 2024 alone.

During its last private funding round, Zepto was valued at approximately $7 billion, making it one of the most valuable startups in India’s quick-commerce sector.

The IPO will place Zepto in direct competition with other listed giants. It is set to become the third major quick-commerce player to hit the Indian bourses, following:

• Zomato (Blinkit): The current market leader in terms of dark store density.
• Swiggy (Instamart): Which recently concluded its own high-profile IPO.

Zepto’s IPO is a litmus test for the “quick-commerce” model in India. While the revenue growth is undeniable, investors will be looking closely at the path to profitability (PAT). The Rs 11,000 crore raise will provide the necessary “dry powder” to compete with deep-pocketed rivals and expand into newer categories beyond groceries, such as electronics and fashion.

As Zepto moves toward its December 26 filing date, the market will be watching to see if the company can maintain its hyper-growth trajectory while eventually reining in its burn rate.