Zepto has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering, bringing the quick commerce company closer to a stock market debut.
The issue size is expected to be around ₹10,000 crore, making Zepto the first pure-play quick commerce company to seek a listing on Indian exchanges.
IPO structure
The proposed offering comprises:
- A fresh issue of equity shares worth ₹8,010 crore
- An offer for sale (OFS) by existing shareholders
According to the UDRHP filed on Monday night, the OFS component includes up to 113,466,566 equity shares with a face value of ₹5 each.
Investors participating in the OFS
Existing shareholders selling shares include:
- Nexus Ventures VI Holdings
- Nexus Ventures VII Holdings
- Contrary ZEP Holdings
- Razor Ventures Zepto
- Kaiser Foundation Hospitals
- Kaiser Permanente Group Trust
Current shareholding of some investors stands at:
- Nexus Ventures VI Holdings: 8.57%
- Nexus Ventures VII Holdings: 4.55%
- Contrary ZEP Holdings: 1.13%
- Razor Ventures Zepto: 1.14%
How Zepto plans to use the proceeds
The company intends to deploy the funds towards expansion and technology infrastructure.
Dark store expansion
Zepto plans to invest:
- ₹1,628.9 crore for setting up new dark stores in existing and new markets
- ₹1,734.9 crore towards lease rentals for existing dark stores
Technology spending
The company has earmarked ₹1,324.7 crore for technology and cloud infrastructure.
Marketing and brand promotion
Zepto will invest ₹520 crore in subsidiary Zepto Marketplace Private Limited for:
- Marketing expenses
- Business promotion
- Brand awareness initiatives
The company also said part of the proceeds would be used for:
- Inorganic growth through acquisitions
- General corporate purposes
However, it did not disclose the amount allocated for these purposes.
Confidential filing route
The Bengaluru-based company had initially filed its draft papers through the confidential route in December 2025, allowing it to keep IPO details private during the early stages.
It received Sebi’s approval in May 2026.
Book-running lead managers
The company has appointed the following investment banks to manage the issue:
- Motilal Oswal Investment Advisors
- Morgan Stanley India Company
- Goldman Sachs (India) Securities
- JM Financial
- IIFL Capital Services
- HSBC Securities and Capital Markets (India)
- Axis Capital
Revenue growth accelerates
Zepto reported strong growth in revenue during FY26.
Fourth quarter performance
Revenue from operations rose 75.2% year-on-year to ₹7,497.6 crore in Q4 FY26, compared with ₹4,278 crore in the corresponding period last year.
Quarterly losses narrowed to ₹1,538.6 crore, from ₹1,831.9 crore a year earlier.
Full-year performance
Revenue more than doubled to ₹22,623.5 crore in FY26, up from ₹11,109.9 crore in FY25.
However, annual losses widened to ₹5,905.1 crore, compared with ₹4,699.7 crore in the previous year.
Order volumes continue to rise
Zepto’s Net Receivables Value, which includes order value after discounts along with user fees, subscription income and advertising revenue, increased sharply over the last two years.
The metric grew from ₹5,231.7 crore in FY24 to ₹24,815.5 crore in FY26.
Operational metrics also improved.
Key numbers
- Orders handled in Q4 FY26: 210 million
- Orders in the December quarter: 166.9 million
- Store count: 1,139
- Annual transacting users at the end of FY26: 47.9 million
TL;DR
Zepto has filed updated draft papers with Sebi for a proposed ₹10,000 crore IPO, including a fresh issue of ₹8,010 crore. The company plans to use the proceeds for dark store expansion, technology investments and marketing, while revenue more than doubled in FY26.
AI Summary
- Zepto has filed an updated DRHP with Sebi for a ₹10,000 crore IPO.
- The fresh issue component is worth ₹8,010 crore.
- Funds will be used for dark stores, technology and brand promotion.
- FY26 revenue more than doubled to ₹22,623.5 crore.
- Annual losses widened to ₹5,905.1 crore despite strong growth.
