Zepto is preparing for an Initial Public Offering (IPO) that could have a notable impact on the Indian startup culture. With the Zepto IPO scheduled for an issue size of $800 million to $1 billion, they are set to expand and assume new dimensions. Its IPO is expected to attract interest in India’s new-age technology ecosystem.
Zepto: A Quick Commerce Revolution
Zepto has influenced the instant grocery delivery market with its 10-minute delivery model. Recently, Zepto has boosted its market share to 29% in two years and is among the largest players in the Indian market. Zepto is already EBITDA-positive in nearly 75% of its dark stores. The company has also reduced the time for its dark stores to break even from nearly two years to six months, a major achievement in the competitive e-commerce market.
Zepto IPO Details: Key Features of the Offerings
Here are a few key details of the Zepto new IPO:
| IPO Date | To Be Announced |
| Listing Date | To Be Announced |
| Expected Issue Size | $800 million – $1 billion |
| Primary Capital Raised | Over $800 million |
| Offer for Sale (OFS) | $300-$400 million |
| Projected Sales (FY26) | $5.5 billion |
| Expected Valuation | To Be Determined |
| Major Lead Bankers | Goldman Sachs, Morgan Stanley |
| Zepto’s Valuation (Aug 24) | $5 billion |
Competitors Comparison
The quick commerce landscape is marked by intense competition, with Zepto, Blinkit (owned by Zomato), and Swiggy Instamart vying for market dominance. Here is a table that illustrates the difference in financials and other major aspects between Zepto and its rivals:
| Parameters | Zepto | Blinkit | Instamart |
| Revenue | ₹4,454 Cr | ₹2,300 Cr | ₹1,100 Cr |
| Annualised Gross Sale | $3 billion | $3.7 billion | $1.8 billion |
| Market Share | 29% | 46% | 24% |
| Dark Stores | 900 | 1,000 | 800 |
Growth and Expansion of Zepto
Zepto has reached over 900 dark stores, surpassing its previous goal of 700 by March. The company is now looking to increase it to approximately 1,000 stores. Its daily order volume ranges around 1.1 million and 1.3 million, while its gross sales in non-grocery verticals like general, apparel, merchandise and electronics have reached ₹200 crore per month.
Moreover, Zepto plans to raise domestic shareholding and achieve a minimum of 40% domestic ownership before its latest IPO. To facilitate this objective, Zepto is consolidating the company’s Singapore parent company with an Indian counterpart. It has also created a new establishment, Zepto Marketplace Private Limited, to transition from a B2B2C model to a marketplace model like its competitors.
Restructuring and Regulatory Approvals
Zepto completed shifting its domicile from Singapore to India. In addition, Zepto’s parent company, Kiranakart Technologies, recently received approval from the National Company Law Tribunal (NCLT) for a merger with its Singapore-based entity.
Market Opportunity and Competition
Currently, quick commerce accounts for just 7% of India’s total addressable market (TAM), estimated at $45 billion. Zepto’s aggressive expansion into Tier-2 and Tier-3 cities is expected to increase its market penetration in the coming years. The company has spent between ₹1,000 and ₹1,100 crore in the last three months to compete with rivals.
Financial Backing and Advisor
Zepto raised a total of $1.6 billion over nine funding rounds, backed by StepStone Group, Lightspeed Venture Partners and General Catalyst. In August 2024, Zepto was estimated to be worth $5 billion.
Although Instamart and Blinkit are supported by corporate majors, Zepto takes its funding mainly from its financial investors.
IPO Timing and Potential Impact
While the Zepto IPO date is officially announced, the company’s rapid growth trajectory and strong financial backing and growth may generate investor interest. In addition, Zepto is expected to file its Draft Red Herring Prospectus (DRHP) by April 2025 with the Securities and Exchange Board of India (SEBI). Zepto IPO‘s opening date is expected to be in July 2025. The company aims to attain positive EBITDA before the IPO launch.
Risks and Challenges
Profitability remains a challenge for Zepto. The company reported an operating revenue of ₹2,024 crore in FY23 but incurred a net loss of ₹1,272 crore. Despite this burn rate, Zepto reached $3 billion in gross sales.
Investor Considerations
Zepto is focusing on increasing domestic shareholding and aims for at least 40% domestic ownership before the IPO. As Zepto prepares for its IPO, this move positions the company to attract domestic investors.
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