Quick Commerce Giant Zepto Plans To Increase It’s IPO Size To $800 Mn – $1 Bn, Reports Suggest

Quick commerce platform Zepto is apparently planning to boost the amount of its initial public offering (IPO) to $800 million to $1 billion, including secondary offerings.

Palicha and Kaivalya Vohra founded Zepto in 2021, and the company presently runs on a B2B strategy. Its parent company, Kiranakart Technologies, purchases goods directly from brands and sells them only to licensee companies such as Geddit Convenience, Drogheria Sellers, and Commodum Groceries.

According to ET, Aadit Palicha, the company’s CEO, recently met with leading mutual funds to discuss its IPO aspirations. According to ET, Zepto expects gross sales of $5.5 billion in the last quarter of FY26 while generating positive EBITDA (excluding ESOPs).

According to numerous brokerages, this prediction is almost similar to the total yearly gross sales of the rapid commerce business in the preceding calendar year.

Related: Zepto and Zaggle Signs Agreement, SaaS Startup to Offer SaaS Solutions To Quick Commerce Giant

Zepto announced its IPO aspirations in mid-2024, initially aiming for a $450 million first capital round. According to reports, the offering amount is now projected to reach $800 million, including $300-400 million in shares sold through an offer for sale (OFS) and an increase in main funding through new share issuance.

Palicha hosted a town hall meeting yesterday (January 21) to inform staff on the company’s financial performance and preparations for an IPO this year, ET reports.

The quick commerce company generates revenue by charging these enterprises a charge for using its brand and platform.

The development occurs at a time when the company has already secured the essential licenses to shift its headquarters from Singapore to India prior to the public listing.

As part of its IPO aspirations, it has established a new firm, Zepto Marketplace Private Limited, as part of its restructuring strategy.

This new corporation, registered in October last year, is designed to assist a transition from Zepto’s present B2B2C structure to a marketplace model, similar to the techniques used by competitors such as Zomato-owned Blinkit and Swiggy Instamart.

Meanwhile, the fast commerce behemoth made news last year after raising a staggering $1.3 billion in capital and outperforming Blinkit and Swiggy Instamart in terms of revenue.

Amid increased competition in the rapid commerce industry, the Palicha-led company is expanding its presence in India. While Zepto was operating in seven cities in 2023, that number increased to 35 last year, and the number of dark stores surged to 650 from 300 previously.