Zepto Plans IPO Size Increase to $800M-$1B

Quick commerce startup Zepto is contemplating an increase in the size of its initial public offering (IPO) to a range of $800 million to $1 billion, including secondary shares, according to a report by The Economic Times.

CEO Aadit Palicha has recently engaged with key mutual funds to discuss the company’s IPO strategy. Zepto is projecting $5.5 billion in gross sales for the final quarter of FY26, with a positive Ebitda (excluding ESOPs). This estimate is nearly on par with the total gross sales of the quick commerce sector for the previous calendar year, as per brokers cited in the report.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The company initiated its IPO planning in mid-2024, initially aiming to raise $450 million in primary capital. However, sources indicate that Zepto is now considering an increased offering of approximately $800 million or more. This includes a potential Offer for Sale (OFS) of $300–400 million in secondary shares alongside an expanded primary capital raise.

Zepto’s Growth and Expansion

Zepto has surpassed expectations by crossing 900 operational dark stores and is now targeting 1,000 locations. This expansion aligns with its broader strategy to scale operations and achieve profitability. The company currently processes between 1.1 million and 1.3 million orders daily. Additionally, sales from non-grocery categories—such as electronics, apparel, and general merchandise—have grown significantly, generating Rs 200 crore in monthly revenue.

Another priority for Zepto is increasing its domestic ownership. The company is working towards achieving at least 40% domestic shareholding before filing for its IPO. To facilitate this, Zepto is merging its Singapore-based parent entity with an Indian firm to relocate its domicile to India.

Goldman Sachs and Morgan Stanley are among the lead banks managing Zepto’s IPO, with additional financial institutions expected to join as the offering nears.

In November 2024, Zepto secured $350 million in funding, raising its total cash reserves to approximately $1.4 billion as it competes in the fast-growing sector against players like Flipkart Minutes.

While Zepto’s IPO valuation remains uncertain, the company is considering Blinkit’s financial metrics for comparison.

Competitive Landscape

Despite its rapid growth, Zepto has faced considerable financial expenditures, reportedly spending Rs 1,000–1,100 crore over the past three months to stay competitive. This aggressive investment strategy has enabled Zepto to achieve $3 billion in gross sales—trailing just behind Blinkit’s $3.7 billion—while simultaneously expanding its dark store network in both established and emerging markets.

Meanwhile, Blinkit recorded a 120% year-on-year surge in gross order value for the December quarter, reaching Rs 7,798 crore. However, it also reported an adjusted Ebitda loss of Rs 103 crore.